Daily Newsletter: Forbearances Continue Lower, Led By Non-Agency Loans

The Mortgage Bankers Association released its monthly update on the share of mortgages in forbearance. Forbearances spiked as the pandemic began, but have been declining gradually since May 2020. Fannie and Freddie loans (a majority of the mortgage market) did the best throughout this process. As a result, they've had less ground to cover recently. In the current report, the percentage of Fannie/Freddie loans in forbearance decreased from 0.68 to 0.64%. Contrast that to non-agency loans (portfolio or private-label) which declined from 3.43 to 3.02%--a significantly quicker pace of reduction, but from a much higher level. Ginnie Mae loans (FHA, USDA, VA) broke the rules to some extent. They continue to account for a higher proportion of forbearances than Fannie/Freddie loans, but they didn't decline as quickly this time, dropping only 0.03% to 1.60%. Other highlights from MBA's report: By stage, 26.8% of total loans in forbearance are in the initial forbearance plan stage, while 59.5% are in a forbearance extension. The remaining 13.7% are forbearance re-entries, including re-entries with extensions. Of the cumulative forbearance exits for the period from June 1, 2020, through January 31, 2022, at the time of forbearance exit: 29.1% resulted in a loan deferral/partial claim. 19.3% represented borrowers who continued to make their monthly payments during their forbearance period. 17.0% represented borrowers who did not make all of their monthly payments and exited forbearance without a loss mitigation plan in place yet. 14.9% resulted in a loan modification or trial loan modification. 11.6% resulted in reinstatements, in which past-due amounts are paid back when exiting forbearance. 6.8% resulted in loans paid off through either a refinance or by selling the home. The remaining 1.3% resulted in repayment plans, short sales, deed-in-lieus or other reasons. The five states with the highest share of loans that were current as a percent of servicing portfolio: Idaho, Colorado, Washington, Utah, and Oregon. The five states with the lowest share of loans that were current as a percent of servicing portfolio: Louisiana, Mississippi, New York, Indiana, and Illinois.

February 22, 2022 Download our Mobile App: Download our Mobile App: Housing News Forbearances Continue Lower, Led By Non-Agency Loans The Mortgage Bankers Association released its monthly update on the share of mortgages in forbearance. Forbearances spiked as the pandemic began, but have been declining gradually since May 2020. Fannie and Freddie loans (a majorit... (read more) Housing News Home Prices Aren't Slowing Down (Yet) Home price appreciation peaked in July with the FHFA House Price Index up 19.3% year-over year and the S&P CoreLogic Case-Shiller 20-City Index up 20.0%. Both have come off the boil since then, but only slightly. Today brought the most rec... (read more) Rob Chrisman Various Vendor Tools; Lots of Lender Updates; New Jumbo and Non-Agency Programs While the bond market is watching the world define a Ukrainian “invasion,” do you know why you should respect people who wear glasses? They paid good money to see you! What are operations people seeing out there? A recent STRATMOR workshop, led by ... (read more) Mortgage Rates Mortgage Rates Edging Back Up Toward Long-Term Highs Heading into the extended weekend, there was a small possibility that today's mortgage rates would turn out to be slightly lower. Reasons for this included looming uncertainty surrounding Russia/Ukraine and the likelihood of defensive lender positioning ahead of an extended weekend. In the wee hours of the morning, those hopes remained alive a... (read more) 30 Yr. Fixed Rate 4.12% +0.04% Rate Change Points Mortgage News Daily 30 Yr. Fixed 4.12% +0.04 0.40 15 Yr. Fixed 3.37% +0.04 0.40 30 Yr. FHA 3.68% 0.00 0.00 30 Yr. Jumbo 3.62% +0.03 0.00 5/1 ARM 3.69% -0.03 0.50 Updates Daily - Last Update: 2/22 15 Yr. Fixed Rate 3.37% +0.04% Rate Change Points Freddie Mac 30 Yr. Fixed 3.92% +0.23 0.80 15 Yr. Fixed 3.15% +0.22 0.80 5/1 Yr. ARM 2.98% +0.18 0.30 Updates Weekly - Last Update: 2/17 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 4.05% +0.22 0.45 15 Yr. Fixed 3.37% +0.21 0.50 30 Yr. Jumbo 3.81% +0.19 0.39 Updates Weekly - Last Update: 2/16 MBS / Treasuries MBS Live Recap: Would Rates Be Going Higher Without Ukraine Situation? Would Rates Be Going Higher Without Ukraine Situation? Rates were rising abruptly as of last Thursday when the first major geopolitical jolt hit the market. After that, stocks and bond yields moved lower. Volatility increased. yields even returned to Thursday's highs 3 more times, but never broke th... (read more) UMBS 30YR 3.0 100.20 -0.30 Price / Yield Change MBS UMBS 3.0 100.20 -0.30 UMBS 3.5 102.25 -0.38 GNMA 3.0 100.75 -0.25 GNMA 3.5 102.36 -0.33 Pricing as of: 2/22 5:21PM EST 10 Year US Treasury 1.9407 +0.0139 Price / Yield Change US Treasury 2 YR Treasury 1.555 +0.086 5 YR Treasury 1.866 +0.047 7 YR Treasury 1.937 +0.026 10 YR Treasury 1.941 +0.014 30 YR Treasury 2.240 -0.002 Pricing as of: 2/22 5:21PM EST Latest Video The overarching factor in volatility is monetary policy and growth outlook,... The 2pm Bond Report - February 22, 2022 How commodities will be affected by Russia-Ukraine tensions EU is working on a package to impose new sanctions on Russia Around the Web CNBC 77% of homebuyers face unexpected repair costs in first year of ownership, survey finds. Here's how to head off surprise expenses The Basis Point Layoff Alert & Long Game Playbook: Mortgage jobs up 50% since 2019, but refis down 45% last 6 months Reuters/USA Today White House calls Russia's actions an invasion, more sanctions are coming: live updates Eye on Housing Gains for Single-Family Home Size Calculated Risk Blog Comments on Case-Shiller and FHFA House Price Increases Calculated Risk Blog A few comments on the Seasonal Pattern for House Prices Calculated Risk Blog Final Look at Local Housing Markets in January CNBC 'Invasion of Ukraine has begun,' UK minister says, as Putin orders troops into breakaway regions CNBC The Fed is going to hike rates regardless if Biden's nominees are confirmed, economists say Calculated Risk Blog Housing Inventory February 21st Update: Inventory Down Slightly Week-over-week; New Record Low Calculated Risk Blog More Analysis on January Existing Home Sales Calculated Risk Blog Hotels: Occupancy Rate Down 14% Compared to Same Week in 2019 CNBC Biden set to order sanctions on separatist regions of Ukraine after Putin decree, EU vows additional measures

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