theMReport.com Your trusted source for mortgage banking news
As overall first-lien mortgage performance improves with more borrowers maintaining their monthly payments, the need for other loss mitigation actions is dissipating. The OCC’s Mortgage Metrics Report for the fourth quarter of 2015 found that eight reporting banks serviced approximately 21 point 5 million first-lien mortgage loans with 3 point 7 trillion dollars in unpaid principal balances as of December 31, 2015.
The UPB was 41 percent of all first-lien residential mortgage debt outstanding in the U.S. According to the data, overall performance of mortgages that were current and performing at the end of the fourth quarter of 2015 was 94 point 1 percent, up from 93 point 2 percent a year earlier and 93 point 9 percent the previous quarter.
As distressed inventory continues to wane, companies are expanding into other areas of the market for other business opportunities. An article from the Wall Street Journal referred to the switch-up among these companies as an identity crisis as they alter their businesses to separate their foreclosure-related past from future opportunities. Five Star President and CEO Ed Delgado told the Journal that, quote, There’s a risk of extinction for companies that are either slow to realize the change in the market or simply don’t adapt. You can expect to see both contraction and extinction of some of these organizations. Close quote
