TransUnion, Chicago, said its latest Financial Services Monthly Industry Snapshot Report shows 2.87% of accounts in the auto, credit card, mortgage or unsecured personal loan industries remained in some form of financial hardship status at the end of December.
Category: News and Trends
MBA: Share of Mortgage Loans in Forbearance Increases Slightly to 5.38%
The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey reported loans now in forbearance increased slightly to 5.38% of servicers’ portfolio volume as of Jan. 17 from 5.38% the prior week. MBA estimates 2.7 million homeowners are in forbearance plans.
Black Knight First Look: 2020 Ends with Higher Delinquencies, Lower Foreclosures
Black Knight, Jacksonville, Fla., said 2020 ended with 1.54 million more delinquent and 1.7 million more seriously delinquent mortgages than at the start of the year, a looming reminder of the challenges facing the market in 2021.
HUD Extends FHA Foreclosure/Eviction Moratorium through Mar. 31
HUD on Jan. 21 extended the moratorium on FHA single-family foreclosures and evictions through Mar. 31.
Kraninger Steps Down as CFPB Director
Consumer Financial Protection Bureau Director Kathy Kraninger announced her resignation on Jan. 20, paving the way for President Joe Biden’s nominee, Rohit Chopra, to take over the agency.
FHA to Permit DACA-Status Recipients to Apply for FHA-Insured Mortgages
HUD said Jan. 20 it will permit individuals classified under the “Deferred Action for Childhood Arrivals” program (DACA) with the U.S. Citizenship & Immigration Service and are legally permitted to work in the U.S. to apply for mortgages backed by FHA.
CFPB Issues Final Rules Clarifying Role of Supervisory Guidance, Escrow Accounts
In final actions of the Trump Administration, the Consumer Financial Protection Bureau yesterday issued two final rules. The first confirms the Bureau’s use of supervisory guidance for its supervised institutions; the second exempts certain financial institutions from establishing escrow accounts for higher-priced mortgage loans.
Quote
“The term ‘lawful residency’ pre-dates DACA and thus did not anticipate a situation in which a borrower might not have entered the country legally, but nevertheless be considered lawfully present. To avoid confusion and provide needed clarity to HUD’s lending partners, FHA is waiving the above referenced FHA Handbook subsection in its entirety. In a subsequent update to the FHA Handbook the language will be removed.”
–From a HUD announcement clarifying FHA loan eligibility for DACA participants.
MBA Letter Offers Support for Yellen Treasury Nomination
Janet Yellen, President-Elect Joseph Biden Jr.’s nominee for Treasury Secretary, appears this morning for a confirmation hearing before the Senate Finance Committee. Ahead of the hearing, the Mortgage Bankers Association sent a letter in support of her nomination.
Biden Nominates Rohit Chopra to Lead CFPB
President-Elect Joe Biden on Monday nominated Rohit Chopra, who worked closely with Elizabeth Warren in creating the Consumer Financial Protection Bureau in the wake of the Great Recession, to serve as the Bureau’s next Director.