Black Knight’s latest McDash Flash Forbearance Tracker
reports that, as of May 12, approximately 4.7 million homeowners are now in forbearance programs with their servicers, up from 4.5 million one week prior. In total, the latest forbearance totals equate to 8.8% of the entire active mortgage universe, in excess of $1 trillion in unpaid principal, accounting for 7% of all GSE-backed loans and 12.4% of FHA/VA loans.
Black Knight notes that the growth in new forbearance plans has slowed considerably, averaging just under 26,000 per day over the past week, an 85% reduction seen since early April. Black Knight is also projecting that 4.9 million loans could be in forbearance by the end of May (9.2% of active mortgages), and just under five million in forbearance (9.4%) by the end of June.
Earlier this week, Fannie Mae and Freddie Mac announced new payment deferral options
allowing borrowers who are in forbearance due to COVID-19 and can return to making their normal monthly mortgage payment, the ability to repay their missed payments at the time the home is sold, refinanced or at maturity.
Black Knight’s McDash Flash daily data set and suite of solutions provides a timely view of the impact of the COVID-19 pandemic on the U.S. mortgage market.