Skip to main content

Black Knight: Forbearances Now Account For $1 Trillion-Plus In Unpaid Principal

May 22, 2020
Forbearance plan. Credit: iStock.com/Kameleon007
Director of Events

Data released by Black Knight reveals that COVID-19-related mortgage forbearances have hit the 4.75 million mark, despite nearly half of these borrowers making April mortgage payments. This marks a modest increase from last week's 4.7 million homeowners in forbearance. The report also show that 4.75 million loans in forbearance represent 9% of all active mortgages, and account for a little over $1 trillion in unpaid principal.
 
The rate of increase is actually down 93% compared to the first week of April, which saw a jump of 1.4 million forbearance plans in a single week. In addition, active forbearance volumes increased by 93,000, 70% lower than the 325,000 in the first week of May.
 
"Of the 4.25 million homeowners who were in active forbearance as of the end of April, nearly half –46%–still made their April mortgage payment," said Black Knight CEO Anthony Jabbour. "The fact that only 54% of borrowers in forbearance actually missed their payments helps explain the disparity between April's delinquency and forbearance rates. However, just 21% of borrowers in forbearance have made their May payments, which could lead to another sharp increase in the national delinquency rate for May if those payments are not received before the end of the month." 
 
Black Knight estimates 7.1% of all GSE-backed loans and 12.6% of FHA/VA mortgages are now in forbearance as well. 
 
Earlier in the week, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac borrowers in forbearance can apply for refinancing and new purchase mortgages once their loans are current, waiving a previous mandatory wait of 12 months. The latest action by the FHFA allows for faster access to record-low rates by the homebuying public.
Data released by Black Knight has revealed that COVID-19-related mortgage forbearances have now hit the 4.75 million mark

 
About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
May 22, 2020
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024