Distressed

In July, month-to-month missed payments increased but improved on an annual basis because a lower share of borrowers were 90 days or more late.

Serious delinquencies remain on the decline, but an increase took place in more recent buckets of 30 and 60 days.

Since 2019, distressed loans have increased 77%, but it is just a small portion of the $691 billion currently outstanding.

The mortgages are part of a program that received congressional scrutiny earlier this year.

The government-sponsored enterprises have consistently earmarked some distressed loans for community, nonprofit and minority investors. Certain Democrats want more.

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.

Over 111,000 distressed mortgage holders opted into a loan modification program during the COVID-19 pandemic by using a designated digital platform or app, according to Black Knight.

But the volume of activity for distressed properties is still lower than the historic norms, Attom Data Solutions said.

There's quite a bit of inventory out there that would have otherwise been returned to the market but for unduly harsh political theater writes the CEO of the National REO Brokers Association.

The payment supplement partial claim the Federal Housing Administration proposed could be effective but not as is, according to the Mortgage Bankers Association and two other groups.

In 2021, Black and Hispanic homeowners were most prone to have suspended payments, but by 2023 they were just as likely to have resumed them as other groups, a study found.