Independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks reported a pre-tax net profit of 17 basis points, or $693 on each loan they originated in the second quarter of 2024, an increase from the reported loss of 25 basis points, or $645 per loan in the first quarter of 2024, according to the Mortgage Bankers Association’s (MBA) newly released Quarterly Mortgage Bankers Performance Report.
Category: News and Trends
Servicing Quote Tuesday, Aug. 20, 2024
“July saw an increase of approximately 20,000 more U.S. homeowners in forbearance compared to the previous month.”
–Marina Walsh, CMB, MBA’s Vice President of Industry Analysis
Incenter’s Alison Tulio and Craig Eagleson on Softening the Impact of Spiking Escrows
High valuations and interest rates are not the only factors that have negatively impacted the mortgage industry. Added to these major hurdles, spiking escrows due to rising property tax assessments and homeowners insurance costs are pushing some borrowers to the brink of default.
MBA Reports Share of Mortgage Loans in Forbearance Increases to 0.27% in July
The Mortgage Bankers Association’s monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance increased to 0.27% as of July 31, 2024. According to MBA’s estimate, 135,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 8.2 million borrowers since March 2020.
ATTOM Reports Foreclosures See Monthly, Annual Increase in July
ATTOM, Irvine, Calif., released its July 2024 U.S. Foreclosure Market Report, noting that foreclosure filings rose 15% month-over-month and a slight .2% year-over-year.
FHA Seeks Feedback on Proposal to Modernize Engagement with Borrowers in Default By Sept. 13
The Federal Housing Administration on Wednesday posted a draft Mortgagee Letter about modernizing engagement with borrowers in default. The agency seeks review and feedback.
MBA: Mortgage Delinquencies Increase in Second Quarter
The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.97% of all loans outstanding at the end of the second quarter of 2024, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.
Redfin: Investor Home Purchases Post Biggest Increase Since Q2 2022
Investor purchases of homes were up 3.4% year-over-year in Q2, per Redfin, Seattle.
MBA Chart of the Week: Early-Stage vs. Seriously Delinquent Mortgage Rates
According to the latest results from MBA’s National Delinquency Survey (NDS) released last week, the overall delinquency rate for mortgage loans on one‐to‐four‐unit residential properties increased to a seasonally adjusted rate of 3.97% of all loans outstanding at the end of the second quarter of 2024. The delinquency rate was up 60 basis points from one year ago.
Servicing Quote Tuesday, Aug. 13, 2024
“The demand slippage in late Q2 could be an early indication that local community developers buying at auction are becoming increasingly wary of rising retail inventory, which represents competition for the renovated homes they sell or rent back into the retail market — typically within six months of buying at auction.”
–Daren Blomquist, Vice President of Market Economics at Auction.com