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re: Mortgage Delinquencies are Spiking
Posted on 7/16/20 at 9:18 am to cadillacattack
Posted on 7/16/20 at 9:18 am to cadillacattack
What a fearmongering article
All these ppl can refi once they are out of forbearance and make one payment
Everyone has equity
Mr Perfect continues to be very low iq
All these ppl can refi once they are out of forbearance and make one payment
Everyone has equity
Mr Perfect continues to be very low iq
2
Posted on 7/16/20 at 9:36 am to SDVTiger
A little fear mongering but there is more to it then just delinquencies.
If someone is in forbearance their credit and loan ability will go down so to refinance the interest rate they refinance to will be higher and more restrictions on the loan and Income to debt ratio. So its not just that easy.
Additionally, banks have to transfer forbearance and late loans to non accrual status which means they cant show any income on the loans. Once a loan is moved to non-accrual is pretty hard to get it out even if the loan holder starts making normal payments again. Less income for bank, less capital, higher restrictions to get a loan, then come housing price decreases etc.
If someone is in forbearance their credit and loan ability will go down so to refinance the interest rate they refinance to will be higher and more restrictions on the loan and Income to debt ratio. So its not just that easy.
Additionally, banks have to transfer forbearance and late loans to non accrual status which means they cant show any income on the loans. Once a loan is moved to non-accrual is pretty hard to get it out even if the loan holder starts making normal payments again. Less income for bank, less capital, higher restrictions to get a loan, then come housing price decreases etc.
Posted on 7/16/20 at 10:33 am to SDVTiger
quote:Assuming they didn't lose their jobs or have hours/salary cut due to Covid and now can't show enough income to qualify for a refi
All these ppl can refi once they are out of forbearance and make one payment
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