Distressed

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Demand is brisk enough that zombie home counts have stayed low, according to Attom, which is nevertheless keeping an eye on rising distressed mortgage activity.

Despite interest rate volatility, prepayment rates also increased, surging to levels last seen in October, according to a new ICE Mortgage Technology report.

The move comes as the House of Representatives passed a successor bill this week to support distressed homeowners served by the Department of Veterans Affairs.

The rule rescission, one of many the Consumer Financial Protection Bureau is planning, would officially remove temporary steps for mortgages added in 2021.

The government-sponsored enterprise is retiring a technology platform used for loan workout reporting and giving mortgage companies a deadline for leaving it.

Numbers jumped after the expiration of a moratorium at the end of 2024, but rates of foreclosure rose across all loan types, the Mortgage Bankers Association said.

The tool's launch comes as various sources report growth in both serious borrower delinquencies and foreclosure activity over the first few months of 2025.

Completed foreclosure sales reach their highest level since the second quarter of 2023, with a 20% quarter-to-quarter increase, Auction.com said.

The Wisconsin class action would retroactively award relief to some former homeowners and comes two years after a Supreme Court ruling in a similar case.

Sellers have roughly a month to bring transactions involving properties from the "claims without conveyance of title" and REO programs in line with the changes.

The way mortgage firms address distressed military borrowers will become less regimented as the Veterans Affairs Servicing Purchase program gets phased out.

Mortgage delinquency rates improved during the month, but the share of borrowers late 90 days or more grew as FHA credit quality deteriorated.

The latest foreclosure report adds to evidence from housing research groups that economic difficulties are beginning to impact a rising number of homeowners.

These mortgages held by low credit score borrowers, made up 90% of the rise in the number of loans 30 days or more late on payments, ICE Mortgage Tech said.

Nationally, starts are higher even when seasonal differences are accounted for and in some areas distress is far above the U.S. average, Attom found.

The jump, which represents an ICE Mortgage Technology survey high, reflects the past cost of natural disasters like hurricanes in the Southeast.

The Department of Veterans Affairs ended a break for borrowers put at a disadvantage by a discontinuation of pandemic aid as they transitioned to a new program.

Foreclosure filings increased 7% in January from December, which could be a housing market starting to experience trouble, or a post-holiday return to normal.

Abandoning recent improvements in federal mortgage loss-mitigation programs would be a mistake, writes the president of the Center for Responsible Lending.