As of February 2021, about half of all borrowers who used forbearance during the pandemic remained in forbearance. Use of the forbearance provision peaked in May 2020 at about 7 percent of all single-family mortgages (about 3.4 million) and gradually declined to about 5 percent by February 2021, according to GAO's analysis of the National Mortgage Database. This provision allowed borrowers with loans insured, guaranteed, made directly, purchased, or securitized by federal entities (about 75 percent of all mortgages) to temporarily suspend their monthly mortgage payments. As a comparison, the average debt per borrower in the fourth quarter of 2017 was $201,737.Many single-family mortgage borrowers who missed payments during the pandemic used the expanded mortgage forbearance provision in the CARES Act. The average debt per borrower was $220,244, up from $212,040 in the fourth quarter of 2019.83% in the fourth quarter, down from 1.16% in the fourth quarter of 2019 The overall 90+ consumer level delinquency rate dropped to.New mortgage volumes grew the most, at 118% year-over-year for lower risk consumers.Originations were spread evenly between refinancing and new purchases, with a 52% refinance share and a 48% purchase share.Here are some additional mortgage numbers from TransUnion’s fourth quarter 2020 report: “While reported delinquencies are currently low, we expect to see a rise in delinquency levels at the end of the first quarter and into the second quarter.” “Refis continue to be a major driver of the increase in activity,” he said. However, TransUnion Senior Vice President and Mortgage Business Leader John Mellman said he expects a rise in delinquencies in 2021 due to expiring forbearance plans. In all, new mortgage origination loan amounts surpassed $1 trillion in 2020. The average balance of new mortgage loans in the fourth quarter of 2020 was $296,505 – nearly $10,000 higher than the average balance in the fourth quarter of 2019. The delinquency rate in the third quarter of 2020 was down 57 basis points from the second quarter of 2020 and up 368 basis points year-over-year. That’s also 67% higher than the third quarter of 2019. That’s up from 50.1 million in the fourth quarter of 2019.Īs an aside, the third quarter of 2020 saw mortgage originations skyrocket, reaching nearly 4 million total loans – the highest level of originations since the Great Recession. “We will soon see the true impact of those programs for both consumers and the credit marketplace,” he said.Ī total of 50.5 million mortgage loans were issued in the fourth quarter of 2020. Komos added that many accounts are expected to come out of accommodation between March and May – including mortgage accounts. Overall, the data analytics company estimates a more than 250% increase in 90-day default activity year-over-year. ![]() With nearly 2 million extra overdue loans in the pipe, that’s approximately 3.4 million loans in total at December’s end. The final delinquency tally for December 2020 showed that, by year’s end, 1.54 million more delinquent and 1.7 million more seriously delinquent mortgages were reported than at the start of 2020, according to a separate January report from Black Knight. However, the performance of those accounts still in accommodation will help shape the true consumer credit picture.” “Additional stimulus and flattening unemployment rates point to a continuation of this trend. “On the surface, the consumer credit market is performing quite well,” said Matt Komos, vice president of research and consulting at TransUnion. ![]() Delinquency rates were at 1% in the fourth quarter of 2019. Serious delinquency rates in mortgages declined year-over-year to 0.7% in the fourth quarter of 2020. Consumer credit activity rose in the fourth quarter of 2020, as low interest rates and high housing demand continued to fuel mortgage demand, according to TransUnion’s latest industry insights report.
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