Orla McCaffrey
speaker
593 appearances
13 recordings
1 series
first heard Mar 2020
last heard Jun 2022
Orla McCaffrey’s voice in public audio — every appearance, attributed to the second.
Trend
recordings per month · last 12 monthsNo recordings in the last 12 months.Older appearances are listed below; set an alert to hear about the next one.
Appearances
The number of requests for forbearance has definitely gone down over the past couple of months.
matched
As more consumers' financial situations have stabilized somewhat, people have gotten back into work to a degree.
matched
But the share of loans in forbearance is still very high.
matched
It's about 7.2%, whereas pre-pandemic it was far below 1%.
matched
Yes, this is new since the pandemic started, and it's really just a way for lenders to decrease risk, decrease the chance that somebody will ask for this and kind of just explain to borrowers why they might not be able to get a forbearance if they need one shortly after they get the loan.
matched
No, it doesn't go that far.
matched
They don't have to make a promise that they will never ask for forbearance on this loan.
matched
They just have to certify in some cases that they have no plans currently to ask for forbearance on this specific loan they're applying for.
matched
And sometimes if they have any other forbearance applications for other properties.
matched
But no, it's not a blanket promise that they can't apply for it.
matched
What the lenders are trying to avoid is having the mortgage fall into forbearance before the lender can sell it to a government agency or before it can be insured by a government agency.
matched
Because in that case, if the loan is in forbearance before the sale, then the lenders take a loss on the sale of either 5% or 7%, which in most cases will probably wipe out profit on the deal.
matched
So that's something lenders are really trying to avoid like the plague.
matched
You know, it really varies.
matched
It can be a couple of days.
matched
It can take up to a couple of months for some loans.
matched
But I believe the average is eight to 10 days at this point.
matched
So the chances of it happening, of a borrower requesting forbearance and, you know, being granted it in that short time span, the chances of that are very low.
matched
But the fact that it's a possibility is what's making lenders extra cautious.
matched
I talked to one borrower and he said at first it kind of scared him because he interpreted it as never being able to apply for forbearance.
matched
Showing 481–500 of 593 · page 25 of 30
← Previous
Next →