The 2Q20 Office of the Comptroller of the Currency mortgage metrics report show that among the seven national banks with large servicing books, over 1 million loans (or 6.8% ) were seriously delinquent, a 4.7x increase from the quarter before.
Some points for added context...
- Reason for concern: The banks (Bank of America, Citi, HSBC, Chase, PNC, U.S. Bank and Wells Fargo) have limited exposure to FHA/VA mortgages which, as a group, have seen more distress than the Freddie or Fannie mortgages that predominate their books.
- Reason for hope: There is no mention of loans in forbearance programs. Recent research by dv01 highlighted material reporting discrepancies in privately securitized pools. Could there be an overlap between loans in serious delinquency and those in forbearance?
No comments:
Post a Comment