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As packages of mortgage servicing rights continue to hit the market, and some wonder at the high multiples, know that the percentage of borrowers current on their mortgage payments increased to almost 95 percent, 350 basis points higher than one year ago. Other stats show that foreclosure starts jumped in February. The MBA’s monthly Loan Monitoring Survey also revealed that the total number of loans now in forbearance decreased by 12 basis points to 1.18 percent of servicers’ portfolio volume in the prior month as of February 28, leaving 590k homeowners in forbearance plans. That marks the 21st consecutive month that percentage of borrowers in forbearance has declined. Finally, the percentage of borrowers with existing loan workouts who were current on their mortgage payments improved for the first time since June 2021. Marina Walsh, MBA’s VP of Industry Analysis, said, “These three results (the lower forbearance rates and higher performance rates for both total borrowers and borrowers in workouts) are especially favorable given that there is typically a dip in mortgage performance in February because of the shortened number of days to make a payment.”  Products and services Foreclosure activity is on the rise, adding uncertainty to the post-pandemic roster. The industry hits the 2-year mark for foreclosure moratoria this month, with February reports touting huge increases in foreclosure starts, up 40% month over month and 176% annually. Increases in foreclosure filings were not far behind. As this influx of foreclosure activity merges with decreasing origination volume, rising interest rates, and inflation fears, where does this leave mortgage servicers? Our recent blog explains how servicers can rise above industry uncertainty with modern technology solutions. Clarifire gives your organization access to Fannie Mae, Freddie Mac, FHA, USDA, and private investor workout solutions in a sophisticated, user-friendly SaaS framework. By expanding your access to data, automation, and streamlining business processes, seamless servicing becomes a reality. Get out of the workout and business rules business and deploy CLARIFIRE®’s powerful capabilities in 2022! Better approach, better software, BRIGHTER AUTOMATION®. Connect with us today at www.eClarifire.com.

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