Distressed

Due in part to pandemic-related forbearance, GSE portfolio loans with year-plus delinquencies hit the highest point seen since the Federal Housing Finance Agency started tracking them in 2015.

Activity in loans insured by the Federal Housing Administration and guaranteed by the Department of Veterans Affairs drove the increase in new requests, according to Black Knight.

The decline in late payments recorded in a trade group survey raise hope that many servicers will bear up under a wave of tighter enforcement coming from regulators.

Mortgage defaults, bank repossessions and auctions rose for the third month in a row, according to Attom Data Solutions.

Numbers decreased across all loan types, with the largest decline among GSE-backed mortgages.

Numbers have fallen on a consecutive quarter and 12-month basis in half of all states but are likely to increase following the gradual end to the federal foreclosure ban, according to Attom Data Solutions.

The firm, dubbed Polpo Capital, is looking to produce a 15% net return to investors with modest leverage by capitalizing on the coming distress in commercial mortgage debt as forbearance agreements expire

Following the federal moratorium’s end, the number jumped, marking the highest quarterly growth on record, according to Attom Data Solutions.

The current volume of distressed mortgages is now down by more than 70% from its peak pandemic level.

Although over 1.5 million forborne borrowers remain, a fifth could exit their plan in the next week, according to Black Knight.