Why mortgage performance's slow deterioration has nuance
National Mortgage News
In-depth analysis, strategy and data spanning the entire residential mortgage industry. An Arizent brand.
Suspensions and arrears on mainstream mortgages hit relatively high levels for the year, which suggests alignment in the two indicators, but a new working paper indicates they have two different drivers. The Mortgage Bankers Association reported Monday afternoon that forbearance rose for the sixth consecutive month in November to 0.5%, while a separate report showed Freddie Mac delinquencies manifest a similar trend during the same period, rising to a year-high of 0.56%. Both of these add to the list of historically healthy loan-performance indicators showing slow, consistent deterioration, but a Federal Housing Finance Agency study released the same day points to evidence that the drivers of delinquencies and payment suspension do differ.
The pace of technology breakthroughs on a broad scale provided momentum for growth in efficiencies within the industry in 2024 despite ebbs and flows in loan volume. While digital adoption has rapidly accelerated since the pandemic, 2024 provided evidence of how essential it has become in home finance — with both positive and negative results to show for it — and an indispensable part of mortgage's future. Headlines frequently focused on artificial intelligence, but regulatory updates and cybersecurity trends also highlighted the role technology plays on a day-to-day basis. Read on about key technology developments over the past 12 months whose influence will continue to be felt.
Freddie Mac's latest economic forecast, while noting the policy uncertainty in the market right now, still calls for the Federal Reserve to keep to its "implied rate cut path" in 2025. Its outlook was informed by what Freddie Mac defined as the top three trends in the housing market in 2024: jobs, rates and insurance. While its November forecast did not take the election results into account, back then Freddie Mac felt economic conditions would keep the Fed on course for rate cuts going forward.
A former PNC Bank loan officer is suing the bank for wage claims for damages allegedly exceeding $5 million. Alla Gurevich filed the class action lawsuit last week in a New Jersey federal court, accusing the Pittsburgh-based lender of violating state wage laws. The short filing does not include many details, but seeks to certify a class of at least 50 LOs who worked for PNC in New Jersey from 2019 to the present.
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Realtor Associate @ Next Trend Realty LLC | HAR REALTOR, IRS Tax Preparer
1dThanks for the updates on, The NMN.