Forbearances Decline for 21st Straight Month

More than a half-million loans remained in forbearance at the end of February according to the Mortgage Bankers Association (MBA). Its monthly Loan Monitoring Survey, which coverers 73 percent of the 36.4 million loan first-mortgage servicing market, shows the preponderance of forborne loans are being serviced for bank portfolios or private label securities (PLS). The 590,000 loans represent a 12-basis point decline from January, leaving 1.18 percent of all active mortgages in the program. The share of Fannie Mae and Freddie Mac (GSE) loans in forbearance decreased 8 basis points to 0.56 percent and those serviced for Ginnie Mae (FHA, VA, and USDA loans) fell 10 basis points to 1.50 percent. There was a 30-basis point decline in portfolio and PLS loans, but the forbearance share is still elevated at 2.72 percent. Of the remaining loans, 30.1 percent are in their initial plan stage, 57.0 percent are in an extension and the remaining 12.9 percent are reentries into the program. Servicers also report that 94.94 percent of all loans serviced were current at the end of the reporting period. This was an increase from 94.91 percent in January. Marina Walsh, MBA’s Vice President of Industry Analysis, said “There were many positive results in overall mortgage performance in February. The percentage of borrowers in forbearance declined for the 21st consecutive month, and the percentage of borrowers current on their mortgage payments increased to almost 95 percent – 350 basis points higher than one year ago. Finally, the percentage of borrowers with existing loan workouts who were current on their mortgage payments improved for the first time since June 2021. These three results – the lower forbearance rates and higher performance rates for both total borrowers and borrowers in workouts – are especially favorable given that there is typically a dip in mortgage performance in February because of the shortened number of days to make a payment.”

March 22, 2022 Download our Mobile App: Download our Mobile App: Housing News Forbearances Decline for 21st Straight Month More than a half-million loans remained in forbearance at the end of February according to the Mortgage Bankers Association (MBA). Its monthly Loan Monitoring Survey, which coverers 73 percent of the 36.4 million loan first-mortgage servicing marke... (read more) MBS Commentary MBS Live Morning: Bonds Reeling as Fed Policy "Repricing" Continues At times in the QE era, the markets have rushed to adjust to a rapidly evolving understanding of the Fed's policy intentions. At other times, the Fed simply surprises the market with a new reality that can't possibly be priced in all at once.&n... (read more) Rob Chrisman Products and Services; Customer Service Study; Training and Events As packages of mortgage servicing rights continue to hit the market, and some wonder at the high multiples, know that the percentage of borrowers current on their mortgage payments increased to almost 95 percent, 350 basis points higher than one year... (read more) Mortgage Rates Bond Market Betrayal as Mortgage Rates Hit Another Long Term High 30 Yr. Fixed Rate 4.72% +0.06% Rate Change Points Mortgage News Daily 30 Yr. Fixed 4.72% +0.06 0.40 15 Yr. Fixed 4.08% +0.11 0.40 30 Yr. FHA 4.38% +0.13 0.00 30 Yr. Jumbo 4.10% +0.05 0.00 5/1 ARM 3.85% +0.01 0.50 Updates Daily - Last Update: 3/22 15 Yr. Fixed Rate 4.08% +0.11% Rate Change Points Freddie Mac 30 Yr. Fixed 4.16% +0.31 0.80 15 Yr. Fixed 3.39% +0.30 0.80 5/1 Yr. ARM 3.19% +0.22 0.20 Updates Weekly - Last Update: 3/17 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 4.27% +0.18 0.54 15 Yr. Fixed 3.55% +0.16 0.46 30 Yr. Jumbo 4.02% +0.23 0.37 Updates Weekly - Last Update: 3/16 MBS / Treasuries MBS Live Morning: Bonds Reeling as Fed Policy "Repricing" Continues UMBS 30YR 3.5 99.94 -0.30 Price / Yield Change MBS UMBS 3.5 99.94 -0.30 UMBS 4.0 102.13 -0.27 GNMA 3.5 100.48 -0.28 GNMA 4.0 102.20 -0.22 Pricing as of: 3/22 5:21PM EST 10 Year US Treasury 2.3825 +0.0856 Price / Yield Change US Treasury 2 YR Treasury 2.166 +0.049 5 YR Treasury 2.401 +0.077 7 YR Treasury 2.430 +0.084 10 YR Treasury 2.383 +0.086 30 YR Treasury 2.602 +0.081 Pricing as of: 3/22 5:21PM EST Latest Video Economists revise home sales expectations, lower as Spring looms Cramer: The Fed has to hike rates by 50 basis points unless something happe... The 2pm Bond Report - March 22, 2022 PIMCO chief economist Paul McCulley responds to Powell's comments on combat... Around the Web CNBC Mortgage rates are surging faster than expected, prompting economists to lower their home sales forecasts CNBC Carl Icahn says there 'very well could be a recession or even worse' Realtor.com The Housing Market Is in the Early Stages of a Substantial Downshift: Home Sales May Drop 25% by the End of Summer, According to This Analyst Calculated Risk Blog Distressing Gap: Existing and New Home Sales Reuters Goldman Sees Fed Hiking Rates by 50 Bps at May, June Meetings CNBC Powell's Volcker pivot Calculated Risk Blog Final Look at Local Housing Markets in February CNBC Traders bet on an aggressive Fed and predict half-point rate hikes in May, June Reuters MORNING BID-Inflation or growth? CNBC 10-year Treasury yield tops 2.34% following Powell's remarks Reuters Euro zone bond yields jump after Powell's hawkish comments Reuters Fed policymakers lean into bigger rate hikes to fight inflation Reuters European stocks edge higher, yields rise as markets adjust rate expectations

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