Mortgage deferral rate continues to decline in July

Servicer forbearance portfolio volume declined in July as mortgage forbearance rates fell below 1% in April.

total loans fell by 1 basis point to 0.34%, according to Mortgage Bankers Association (MBA). Mortgage repayment rates trending downward is good news after the economic fallout of the pandemic has hit borrowers hard.

The largest decline in July came from portfolio loans and private label securities (PLS), which fell 34 bps to 1.34% of servicers’ total portfolio volume.

fannie mae When freddie mac Loans in repayment fell 1 bps to 0.34%. Ginny May Loans were unchanged from the previous month, at 1.26% from June.

“Fannie Mae, Freddie Mac and Ginnie Mae loan forbearance rates have changed little over the past three months, probably because loans entering and exiting forbearance reached roughly the same level. Marina Walsh, vice president of industry analysis, said:

As of July 31, 370,000 homeowners have payment forbearance plans, down from 405,000 at the end of June.

Exits accounted for 0.14% of service portfolio volume in July, while new moratorium requests accounted for 0.11%. The survey found that 30.46% of his total loans last month were in the original planning stage and 56.1% were in the grace period. The remaining 13.43% represent reentries.

According to MBA data from June 2020 to July 2022, 29.5% of exits led to loan deferrals or partial claims, and 18.5% of borrowers continued to make payments during the grace period. However, about 17.2% of borrowers did not make monthly payments and did not have a loss mitigation plan.

The survey also shows a drop to 95.59% in July, with no delinquencies or foreclosures. He is up from 95.71% in June, during a period of high inflation and volatility in mortgage rates.

Idaho has the highest percentage of current loans as a percentage of its servicing portfolio, followed by Washington, Colorado, Utah, and Oregon.

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