Distressed

Meanwhile at Essent, more loans exited the inventory in January than in December.

The housing market’s boom led to more borrowers building home wealth but the pandemic’s negative impact brings concern for underwater owners, according to Attom Data Solutions.

However, the share of new impairments increased, likely as a result of the high concentration of these loans given to self-employed borrowers.

The CARES Act-related forbearances could be “lulling us into a false sense of security” as 12-month expirations approach, according to Black Knight.

The uptick marks only the third increase in consecutive weeks since reaching a peak in May, according to Black Knight.

The move is in line with expectations that the Federal Housing Administration would extend more consumer relief amid the transition in Washington to Democratic leadership.

The uptick follows the pandemic-era trend of midmonth increases in active plans, according to Black Knight.

Remote work and pandemic-induced requirements from the government related agencies forced lenders to pivot on a dime, making it entirely possible that compliance defects will have a larger share in future quarters, Nick Volpe, executive vice president of ACES Quality Management, says.

The company’s 4Q originations were down from the same time in 2019 and the number of overall loans for 2020 marked a decline from the year before.

The government-sponsored enterprises’ moratoria will now continue well past inauguration day, according to the Federal Housing Finance Agency.