New reports show that the strategies used by three major government-backed mortgage agencies to help delinquent borrowers keep their homes make financial sense for the entities themselves. Fannie Mae, Freddie Mac and the Federal Housing Administration save billions of dollars over time by giving loans a chance to reperform, Housing Risk and Policy Advisors found […]
Home retention saves Fannie, Freddie and FHA billions Read More »
Early- and mid-stage mortgage delinquencies saw the biggest yearly increases among all credit products, a development Vantagescore deemed a “surprise”, which “may be demonstrating early signs of borrower financial stress.” The share of mortgages 30-to-59 days behind on payments jumped to 1.03% in May from 0.92% during the same month a year earlier. Among all
Researchers find ‘surprise’ in new mortgage delinquency data Read More »
Mortgage modifications surged in the first quarter at the nation’s largest banks, reversing a yearlong decline, while foreclosure activity also saw a marked uptick, according to a new government report. The data suggests rising financial stress is hitting certain borrower segments, even as conditions for the mortgage market overall appear relatively strong, based on numbers
Banking giants see surge in loan modifications Read More »
Freddie Mac is instituting higher limits for amounts it will reimburse for attorney costs associated with uncontested distressed mortgage resolutions, including mediation, and certain bankruptcy services. Specific amounts include $650 for preparing and recording a loan released after a deed-in-lieu of foreclosure gets completed, according to a bulletin. The limit for a premediation conference is
Freddie Mac raises some reimbursement limits for some fees Read More »
Following a steady rise in filings in the first few months of the year on the heels of federal policy changes, total foreclosure numbers eased in May, even as a key metric continued trending upward. A foreclosure filing appeared in one out of every 4,009 U.S. properties last month, representing a total of 35,498 units
Foreclosures in May decrease after early-year surge Read More »
Enjoy complimentary access to top ideas and insights — selected by our editors. As the Trump Administration looks for cost savings at HUD and FHFA, they are learning that things that seem easy to achieve on the surface can be far more complex in practice. After the relatively easy task of headcount reductions, for example,
How DOGE could shrink federal housing spending Read More »
Nonqualified mortgage performance over the past decade has varied broadly by segment while generating relatively few credit losses on average, a new Kroll Bond Rating Agency study shows Weighted averages show losses from a 3.8% cumulative default rate have been just 0.03%, but the CDR is far higher for a market segment like borrowers with
Low credit scores in non-QM verge on 10% default rate Read More »
The Federal Housing Administration has revised updates planned for rules around contacting and offering options to distressed borrowers. The FHA has removed required outreach at particular times from a planned transition to permanent loss mitigation options from temporary pandemic contingencies, and also is tweaking modernization of what were originally “face-to-face” meeting requirements. Overall, the new
FHA tweaks updates to loss mit options, ‘face-to-face’ rule Read More »
Newrez wants to dismiss a trio of “zombie” second mortgage lawsuits, suggesting its servicing arm didn’t violate, nor is subject to, the lending laws consumers cite. Borrowers accuse Newrez’s Shellpoint of inflating the balances of their long-dormant second mortgages, and for long periods failing to send them monthly statement notices. The prospective class action complaints
Newrez fires back in trio of “zombie” mortgage lawsuits Read More »
Loan performance hinges on more than credit scores and interest rates. Environmental infrastructure—especially pond liners—can quietly jeopardize property value, borrower stability, and servicing costs. Lenders who overlook these risks expose their portfolios to long-term damage they cannot track through standard underwriting alone. The importance of pond liners Pond liners are necessary as a foundational element
Why lenders should care about liner failures Read More »