Loss Mitigation

As climate changes expose more U.S. housing stock to potential flood damage, the Congressional Budget Office has issued an impact report encompassing homeowners with mortgages protected by the GSEs or backed by the FHA or VA.

Rob Barber, CEO at ATTOM Data, said, “It’s evident that challenges in the housing market persist. While we anticipate a likely decline in the coming months due to the holiday season and other seasonal patterns, we do foresee a continued uptick in 2024 as foreclosure filings make their way through the pipeline.”

Mortgage servicing proved to be a bright spot for independent mortgage banks in Q3, as roughly half of the companies MBA polled stayed profitable in the quarter, thanks to their production and servicing business lines.

In its Annual Report to Congress for fiscal year 2023, the FHA detailed the work of its single-family mortgage insurance programs in fiscal year 2023, including updates on credit access, capital in the MMI Fund, and delinquency rates of mortgages in its portfolio.

An update to allowable inspection fees will increase compensation for inspections that determine a property’s occupancy status and safeguard neighborhoods from blight arising from inadequately maintained unoccupied homes.

In a letter to Mike Johnson, Speaker of the United States House of Representatives, 11 housing organizations have issued a letter to Congress to extend the authority of the NFIP by ensuring other vital housing programs do not lapse on November 17.

The MBA reports mortgage delinquencies tracked closely with the nationwide unemployment rate in Q3, with an uptick in delinquencies across all loan types–with FHA’s portfolio experiencing the largest year-over-year increase.

Due to financial instability, Sac City, Iowa-based Citizens Bank has been placed in receivership by the FDIC, marking the fifth U.S. bank failure reported this year.

Attorney Lisa Woodburn details a recent Florida case where a property owners association was awarded nearly $90,000 for delinquent assessments, interest, late charges, costs, and attorneys’ fees.

In an effort to assist borrowers impacted by Maui’s August wildfires, mortgage servicers will be prohibited from initiating or completing foreclosure actions through May 6, 2024.