Distressed

An uptick in pandemic-related payment suspensions reflecting new or restarted plan activity previously occurred as the omicron variant spread, but activity has since subsided.

However, the seven institutions in the Office of the Comptroller of the Currency study service 13% fewer loans compared with the third quarter of last year.

While over 112,000 loans exited plans in the past week, there is only a modest opportunity for continued improvement in the near term, Black Knight said.

Axylyum, which recently released information about its first named client, offers an alternative to other forms of risk sharing for private companies originating income-producing mortgages.

Like the stock market rout around news of the Omicron variant, the recent increase in payment suspensions suggests financial troubles associated with the pandemic may not be over.

The decline in late payments recorded in a trade group survey raise hope that many servicers will bear up under a wave of tighter enforcement coming from regulators.

Following the federal moratorium’s end, the number jumped, marking the highest quarterly growth on record, according to Attom Data Solutions.

Although over 1.5 million forborne borrowers remain, a fifth could exit their plan in the next week, according to Black Knight.

The end of many COVID relief plans in September have the industry holding its breath, with outcomes potentially foreshadowing the months to come.

The overall pace of both entries and exits slowed, even as the private-label securities and portfolio loan segment saw a spike in its numbers.