Bob Repass – “How have you been hit with forebarance plans, are you seeing any traction from your servicers being able to get some modifications or forbearance plans or are things pretty much cash flowing the way they have been over the last several months.”
Chaz Guinn – “With the 450 RPLs, 12 months or more, payments have been received to us on behalf of our servicer, we are at a 1% default rate in terms of borrowers wanting a forbearance. We have definitely seen 4 to 10, to 12, even higher in terms of requests. Many of the borrowers we’ve been been able to require over the next handful of years are making a $4oo-600 mortgage payment, its not a $1500-$2000 mortgage payment. With that being said that definitely is a certain percentage of their income. I will say if you look at the majority of our modifications and our active pay plans, the DTI is well below 50%. I’m not going to say that’s a direct cursor to default but I think we all know the more your mortgage balance or amount of income your assessing to your mortgage payment, the more that creeps above 50% we all know that eventually is going to get a default.”
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