Distressed Mortgages

Serious mortgage delinquencies are at their highest since May 2023, and early payment default activity is also a concern, ICE Mortgage Technology said.

Government-guaranteed securitization rules complicate servicing sales and are a growing problem for nonbanks, the Community Home Lenders of America says.

Foreclosures were up month to month in October, while future indicators, such as mortgage delinquencies and trouble making all debt payments, came in higher as well.

Private mortgage insurers are having a strong year so far, although most had flat business in the third quarter, industry results show.

Even as home equity withdrawals hit a two-year high, utilization rate remained less than half of normal, ICE Mortgage Technology said.

The number of vacant, abandoned properties in foreclosure, while up from the third quarter, was nearly 1,800 lower than a year ago, Attom Data said.

If customers perceive they are dealing with a scripted chatbot, they are likely to be less satisfied with their mortgage servicer, J.D. Power said.

The post-pandemic normalization of the housing market, economic factors and natural disasters, are contributing to the rise in late payments, ICE Mortgage Technology said.

The economy and the environment are impacting loan entries into forbearance, as well as their performance on exit, the Mortgage Bankers Association said.