Distressed Mortgages

Rising defaults, fraud risks, and collapsing rents are converging in urban multifamily, threatening lenders and taxpayers, according to the Chairman of Whalen Global Advisors.

Less than 45% of mortgage residential properties in the United States were equity-rich last quarter, a 1.5-percentage-point drop from the third quarter.

VA- and FHA-backed mortgages helped drive the increase in property volume, but sales did not maintain the same pace, according to Auction.com.

Overall, three-quarters of those in a National Mortgage News survey believe loan production will increase during 2026, but just 15% felt strongly about it.

Prepayment speeds approached recent highs last month, but distressed borrower data paints a mixed picture about the current housing market, according to ICE.

Foreclosure filings were reported on more than 360,000 properties in the United States last year, up 14% from 2025 and 3% from 2023, according to Attom.

The Department of Housing and Urban Development is selling more due-and-payable HECMs on homes that are occupied while reviewing the loan program.

Wells Fargo, JPMorgan Chase, U.S. Bancorp and Citigroup will streamline borrower requests for an additional 90-day forbearance, allowing verbal applications.

Fitch Ratings' outlooks for mortgage and title insurers this year are neutral, as housing deals with affordability challenges and a likely economic downturn.