It’s been over a year since lenders and the federal government stepped in to help Americans stay in their homes amid the global health and economic crisis caused by the Covid-19 pandemic. And many Americans still need that support.
About 2.1 million homeowners are still in forbearance plans that suspend their mortgage payments, according to Mortgage Bankers Association’s latest data. And about 1.8 million families are not in forbearance, but are already at least 90 days delinquent on paying their mortgages as of April, according to the latest data from Black Knight, which monitors mortgage data.
But those protections are running short on time. President Joe Biden extended the federal foreclosure moratorium earlier this year, but that will expire on June 30, 2021. Many of the forbearance programs on federally backed loans are set to lapse this fall.
n a hearing Wednesday, Senators asked the CEOs of several major banks about what they plan to do to help Americans caught in this situation. Here’s what the heads of Bank of America, Chase and Wells Fargo said.
Read more at: https://www.cnbc.com/2021/05/27/when-banks-could-restart-home-foreclosure-proceedings.html
Lenders are slowly and selectively starting to underwrite jumbo mortgages again after all but abandoning the market as the pandemic got underway.
Since February 2020, jumbo mortgage originations have plunged 57 percent, according to data from the Mortgage Bankers Association (MBA). https://www.msn.com/en-us/finance/realestate/lenders-are-slowly-starting-to-offer-jumbo-mortgages-again/ar-BB16ESKD
The once-robust market for jumbo loans, and some other types of loans, collapsed at the onset of the pandemic. Lenders worried about the ability of borrowers to repay their loans as unemployment skyrocketed.
“There was no secondary market to purchase these loans and the banks can only hold so many on their balance sheets,” says Mitch Ohlbaum, real estate broker and president of Macoy Capital in Beverly Hills, California. “In fact, there was no secondary market for jumbo loans, non-QM loans, private loans or much of anything to be honest.”
read more at: https://www.msn.com/en-us/finance/realestate/lenders-are-slowly-starting-to-offer-jumbo-mortgages-again/ar-BB16ESKD
Record unemployment caused by the coronavirus pandemic led to the largest one-month increase in mortgage delinquencies ever recorded. The number of borrowers who stopped paying their home loans spiked by 1.6 million last month, new data show.
Not even during the Great Recession did delinquencies rise this fast. During that time, it took 18 months before there was a single-month increase as large.
The national delinquency rate soared to 6.45 percent in April, up from 3.06 percent in March and three times the previous single-month record set in 2008, according to data released this week by Black Knight, a real estate data and analytics company. The 3.6 million borrowers who are now past due is the most since 2015.
The data represents homeowners who didn’t make a mortgage payment in April, including those who are in forbearance plans. It comes from the company’s loan-level database representing a majority of the national mortgage market.
You only need to look at the job market to understand why so many people aren’t paying their mortgages these days. The U.S. economy shed 20 million jobs in April and the unemployment rate soared to its highest level since the Great Depression as many businesses nationwide shuttered. The impact has been swift and severe: An additional 2.4 million Americans filed jobless claims last week, the Labor Department announced, pushing the nation’s nine-week total past 38 million.
read more at: https://www.wvgazettemail.com/washington_post/finance/homeowners-stopped-paying-mortgages-in-record-numbers-in-april/article_782bca3e-66f9-59f4-bce9-eae8cf7faa19.html