January 23, 2025
Mortgage performance continues to slip according to ICE Mortgage Technology's December First Look report.
It is a now at a three-year high and has risen for the seventh consecutive month and this negative trend is likely to continue in the current year.
Federal Housing Administration and Veterans Affairs mortgages led the charge for mortgage that are creating the most anxiety for defaults as those government-guaranteed mortgage products are the first-in-line for delinquent mortgages.
These products are intended for first-time home buyers and buyers that might not otherwise be able to afford a conventional mortgage with a 20% down payment and inherently riskier.
This follows a trend that, unfortunately, borrowers are relying increasingly on government and non-conforming loans to finance in a challenging market. Indicative of this trend is that more traditional conforming loans have hovered around historic lows for five months as buyers find it increasingly difficult to quality for these types of loans.
Another alarming statistic is that the total share of mortgages 30 days or more late for their payment, but not yet in foreclosure, was 3.72% in December and up 15 basis points from December, 2023.
Even scarier was, during December, servicers made 31,000 foreclosure starts, a change of 50.37% compared with November's 21,000. The increase compared with December 2023 was 29.69%.
The total number of properties in delinquency including foreclosure was over 2.2 million, up by 89,000 compared with one year prior.
For properties considered serious delinquent, 90 days or more late but not yet in foreclosure, the numbers increased in December by 29,000 from the prior month and 66,000 over the prior year to 541,000.
All this points to continued stress on a mortgage industry that, after three difficult years, is in serious need of lower rates and increaased inventory.
pre-funding reviews. Mortgage quality control. Mortgage post-closing audits. Post-close auditing. Mortgage pre-funding reviews. Mortgage staffing. Post-closing audits. Mortgage QC.
Comments