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51 days ago • Posted by William Ramstein

US Mortgages and covid hit servicers

Mortgage forbearance increased to its maximum in May of 2020; since its 5.761 million high, the volume has declined to 2.787 million. In the same period interval, prepayment rates on principal balances have gone up from 2.29% to more than 3% putting marbles under the feet of servicers who gain from slow yet steady interest payments (which is what represents the coupons for institutional investors). This is due to a wider scaled refinancing stemming from low interest rates. Source; WSJ

US Mortgages