Mortgage defaults

Controlling classes of investors in commercial mortgage-backed securitizations can replace a special servicer, but before they do, they should make sure the long and potentially expensive process is worth it.

Home retention actions for loans owned by Fannie Mae and Freddie Mac declined in the fourth quarter and that trend is likely to continue given the strong economy.

While fading 9.53% annually, February mortgage delinquencies posted a month-over-month increase for the first time in 12 years, according to Black Knight.

Servicers that fail to give borrowers access to digital collection methods are missing out on a chance to improve delinquency rates and lower costs.

Fewer Hawaii property owners fell into foreclosure last year in continuation of a trend that began in 2014, according to state data.

The foreclosure rate in the Tampa Bay area was unchanged between 2017 and 2018 despite a drop in the percentage of homes that were seriously delinquent on their mortgages.

Strong loan performance continued into December as all delinquency stages fell annually behind equity gains and the sustained rise of home prices, according to CoreLogic.

Whether through greater investments in technology and talent, or streamlining back-end processes to improve the decision-making process, mortgage servicers are doing more to prioritize borrowers. Here's a look at seven of these borrower-focused initiatives and how they're reshaping mortgage servicing.

Mortgage prepayment speeds fell to a 19-year trough despite recent interest rate declines, but could rise if those lower rates lead to an increase in home purchases, according to Black Knight.

Fewer mortgage borrowers are falling behind on their payments, and consumers' broader borrowing habits indicate an increased willingness to turn to nontraditional sources like fintechs for their lending needs, according to TransUnion.

The funds the bank promised to spend on consumer relief will instead be used to make new home loans, according to a report by the monitor of its 2017 settlement with the U.S. Justice Department.

Mortgage delinquencies in the fourth quarter were at their lowest level in nearly 19 years, helped by wage growth, low household debt and low unemployment, the Mortgage Bankers Association said.

Mortgage loan performance remained strong in November as serious delinquencies fell to their lowest reported level since before the housing bubble burst, according to CoreLogic.

As more homeowners decide to age in place, the amount of equity rich properties continues to rise, according to Attom Data Solutions.

Residential mortgage-backed securities servicers are better able to weather a downturn and the resulting loan defaults today versus before the crisis because of their investments in technology and regulatory compliance, Fitch Ratings said.

New York State is providing additional funding to municipalities that will boost efforts regarding mortgage servicer compliance with the state and local vacant property laws.

The distressed real estate market has bounced back from the housing bubble as most foreclosures are due to natural disasters, according to Attom Data Solutions.

Consecutive-month default rates for home loans are increasing, and they could remain higher the next few months, according to a recent report.

Loans in commercial mortgage-backed securities originated after 2009 by nonbank lenders have a significantly higher default rate than those originated by banks, a Fitch Ratings report said.

The strong economic headwinds from last fall facilitated a declining loan delinquency rate across the country, though areas hit by natural disasters had increased defaults, according to CoreLogic.