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MortgagePoint July 2023

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July 2023 » thefivestar.com 59 J O U R N A L July 2023 decreased three basis points from 0.61% to 0.58%. "The number of loans in forbearance is reaching levels not seen since the beginning of March 2020, prior to the passage of the CARES Act," said Marina B. Walsh, CMB, MBA's VP of Industry Analysis. "Today, more than 96% of homeowners are current on their mortgages, thanks to the favorable jobs mar- ket and the success of loss mitigation options over the past three years." By stage, 34.9% of total loans in for- bearance were in the initial forbearance plan stage, while 52.6% were in forbearance extension. The remaining 12.5% represented forbearance re-entries, including re-entries with extensions. Total loans serviced that were current (not delinquent or in foreclo- sure) as a percentage of servicing portfolio volume increased to 96.12% in May 2023 from 95.89% in April 2023 (on a non-seasonally adjusted basis). Total completed loan workouts from 2020 and onward (repayment plans, loan deferrals/ partial claims, loan modifications) that were current as a percent of total completed work- outs increased to 74.93% in May from 74.39% month over month. Of the cumulative forbearance exits for the period from June 1, 2020, through May 31, 2023, at the time of forbearance exit: » 29.6% resulted in a loan deferral/partial claim. » 17.9% represented borrowers who con- tinued to make their monthly payments during their forbearance period. » 17.8% represented borrowers who did not make all of their monthly payments and exited forbearance without a loss mitiga- tion plan in place yet. » 16.1% resulted in a loan modification or trial loan modification. » 10.8% resulted in reinstatements, in which past-due amounts are paid back when exiting forbearance. » 6.6% resulted in loans paid off through either a refinance or by selling the home. » The remaining 1.2% resulted in repayment plans, short sales, deeds-in-lieu, or other reasons. The five states reporting the highest share of loans that were current as a percent of servicing portfolio included: » Washington » Idaho » Colorado » California » Oregon The five states with the lowest share of loans that were current as a percent of servic- ing portfolio included: » Louisiana » Mississippi » West Virginia » New York » Indiana According to the U.S. Department of Labor (DOL), for the week ending June 10, the advance figure for seasonally adjusted initial unemployment claims was 262,000, unchanged from the previous week's revised level. The previous week's level was revised up by 1,000 from 261,000 to 262,000. The four-week moving average was 246,750, an increase of 9,250 from the previous week's revised average—marking the highest level for this average since November 20, 2021, when it was 249,250. The advanced seasonally adjusted insured unemployment rate was 1.2% for the week ending June 3, unchanged from the previous week's unrevised rate.

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