According to financial institutions, the proportion of mortgages in repayment fell by 5 basis points from 0.49% to 0.44% in June 2023 compared to May 2023. Mortgage Bankers Association(MBA) Monthly Loan Monitoring Survey.
Since March 2020, mortgage servicers have offered forbearance to about 7.9 million borrowers, and 220,000 homeowners are currently on forbearance plans.
“Mortgage patience is decreasing as most homeowners maintain or improve their financial health,” said Marina Walsh, vice president of industry analysis at the MBA. “Jobs continued to grow in June, with the unemployment rate at 3.6%, according to a recent report from the U.S. Bureau of Labor Statistics.
Walsh added, “MBAs are expected to experience a slowdown in the economy, which could lead to higher unemployment rates and mortgage delinquencies later this year.” Perseverance remains a viable loss mitigation option for homeowners who may struggle under more difficult economic conditions. ”
Categorized by type of investor, Ginny May Loans in reprieve decreased from 1.06% to 0.93% month-on-month.share of fannie mae and freddie mac Loans in reprieve decreased from 0.23% to 0.21% month-on-month. For other loans (portfolio and PLS loans, etc.), the forbearance rate decreased from 0.58% to 0.52% month-over-month.
Broken down by service portfolio volume, pending equity loans at independent mortgage banks fell to 0.56% from 0.64% in May. On the other hand, the proportion of pending loans in deposit accounts decreased from 0.34% to 0.32%.
The majority of borrowers (78.3%) have fallen into such a situation due to COVID-19 related impacts. Other main reasons were natural disasters (6.1%) and temporary hardships such as death, divorce, unemployment and disability.
As of June, 34.9% of total loans under moratorium were in the original moratorium planning stage, and 54.5% were in the process of extending moratorium plans. The remaining 12.6% of him were re-entry, including re-entry with extension.
Washington, Idaho, Colorado, Oregon and California had the highest interest rates for current borrowers. Mississippi, Louisiana, New York, Indiana and West Virginia had the lowest rates. Total liquid loans (not delinquent or foreclosed) as a percentage of repayment portfolio volume remained flat month-on-month at 96.12%.