Wells Fargo was the most active servicer in repurchasing delinquent loans in May, with $2.31 billion, 50.2% of the market total. A significant share of those loans were reportedly current, the MBS disclosures show, indicating that Wells repurchased loans in forbearance.
The three agencies reported a total of 1.2 million single-family loans one payment past due, or 3.03% of their combined portfolio. Ginnie’s 4.78% 30-day delinquency rate was the highest, including a 5.68% rate for FHA loans.
“The problem,” said Dave Worrall, president of LoanCare, Virginia Beach, VA, “is that servicing buyers aren’t hitting the bid.” This, in turn, forces the actual originator of the loan to keep MSRs.
Black Knight reported: “At today’s level, mortgage servicers need to advance a combined $3.5 billion a month to holders of government-backed mortgage securities on COVID-19-related forbearances."
According to Francis Creighton, president and CEO of the Consumer Data Industry Association, the adoption of the CARES Act went smoothly, but it’s too early to tell what impact the pandemic will have on consumer credit...
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