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12 The Exchange bank portfolio and private-label mortgage- backed security loans that are seriously delinquent today and not in loss mitigation, around 85% were originated pre-Great Recession. Many of these borrowers have been previously modified. Options are more limited for these borrowers. ese make up about half of the seriously delinquent borrowers not in forbearance. For the other half of seriously delinquent borrowers that are on a loss mitigation plan, we are seeing a greater mix of more recent originations. e cautionary note for these borrowers is that around three-quarters have not yet resumed payment on their mortgages. It is still early as many just recently came out of forbearance, so we need to track these borrowers closely to see if they are getting back on track. How are potential backlogs in judicial foreclosure states likely to impact these numbers going forward, if at all? Cordell: We didn't see a dominance of past-due mortgages in judicial foreclosure states where you have much longer foreclosure timelines. However, at the same time, the servicers under CFPB regulations are still trying to work with the borrowers. So, I don't think we're going to necessarily see this huge flood of foreclosures taking place early on. ese will work themselves out over time. We're in a very strong housing market. Many borrowers have enough equity in their homes to avoid foreclosure, and there is a huge demand for housing in the market. is will help most avoid foreclosure. An: I agree with you. is time, backlog in our core system is not a major concern. As Larry explained earlier, we're likely to get back to pre-pandemic foreclosure levels, maybe a little bit higher given some of the backlog, but it won't be like the Great Recession years. Just to put it into perspective, on a conservative estimate, half a million loans might go into foreclosure. But during the Great Recession, there were four to five million foreclosures. It's not on the same scale. So court backlogs are not a major concern today. Get to Know Industry Executives Beyond the Boardroom "For bank portfolio and private-label mortgage- backed security loans that are seriously delinquent today and not in loss mitigation, around 85% were originated pre-Great Recession." —Larry Cordell, SVP, Risk Assessment, Data Analysis, and Research Group @DSNEWSDAILY DS NEWS @DSNEWSDAILY FOLLOW. LIKE. RETWEET. REPEAT. Engage with DS News on social media to put the latest default servicing news, content, and strategies at your fingertips.