Distressed

Also, a rate drop opened up some refinancing options in March, and prepayments experienced an extraordinary short-term rise.

Economic turbulence affected borrowers during the quarter and will likely impact their ability to refinance maturing loans, the Mortgage Bankers Association said.

The increases are partly due to the fact that the pandemic-related property backlog is finally moving forward, but it also stems from recent economic weakness.

The agency added increased emphasis on loss mitigation and special purpose credit programs following heightened calls for more participation in the latter from a minority trade group.

The decision in the Empire State's highest court could expand the options for owners who never received required notifications in that jurisdiction, and potentially others nationwide.

Home loan servicers are watching other indicators like chargeoff rates in the auto loan and credit card sector for signs of trouble.

Completions also declined in the short-term, but annually they rose sharply, suggesting that the lifting of some pandemic restrictions is allowing them to proceed.

The company was accused of not providing pandemic relief to at least 160 private mortgage borrowers in the state.

The new policy will provide more leeway to distressed borrowers, whose ability to get more affordable terms for their loans has been hamstrung by higher rates.

Current forbearance volumes have returned to pre-COVID levels among loans held at Fannie Mae and Freddie Mac, a Fed study found.