Distressed

A total of 8,800 homes facing foreclosure are currently sitting vacant, up from the previous quarter, a report from Attom reported.

While late payment and foreclosure rates continued to fall, prepayment activity also slowed with rates approaching 7%.

While a majority of current forborne borrowers sought relief for reasons related to COVID-19, servicers are seeing a growing share of cases involving natural disasters or personal financial issues, the Mortgage Bankers Association said.

HUD has rolled out its 90-day foreclosure moratorium and the government-sponsored enterprises are providing up to a year of forbearance with fees or penalties.

Favorable economic trends have helped keep homeowners current, but some signs of credit stress are also beginning to emerge, the Mortgage Bankers Association said.

But the senior housing portfolio is starting to show signs of significant stress, causing the multifamily sector's delinquency rate to rise by 200% year-over-year.

But mortgage numbers remain historically very low and fall short of pre-pandemic levels, according to VantageScore's latest monthly report.

The growing number of financially troubled customers and servicing transfers gone wrong helped to lower the overall industry score by 6 points, J.D. Power said.

Three years later, the percentage who kept paying was the same as those who didn't and exited without immediate loss mitigation in place, the Mortgage Bankers Association discovered.

While multifamily late payments were flat, hotel properties continued to improve but office performance deteriorated significantly from the first quarter, the Mortgage Bankers Association said.