Black Knight: 9% Of Mortgages In Forbearance
May 29, 2020
Black Knight’s latest McDash Flash Forbearance Tracker shows that forbearance volumes have flattened over last week’s totals. As of May 26, 4.76 million homeowners are in forbearance plans, with a net increase of just 7,000 new forbearance plans since last week. That’s in comparison to a 325,000 net increase in the first week of May, and 1.4 million in the first week of April. The 4.76 million homeowners in forbearance plans represents 9% of all active U.S. mortgages.
The study finds that at today’s level, mortgage servicers need to advance a combined $3.6 billion per month to holders of government-backed mortgage securities on COVID-19-related forbearances, on top of the $1.5 billion in taxes and insurance payments they must make on behalf of borrowers.
The Federal Housing Finance Agency recently announced that Fannie Mae and Freddie Mac borrowers in forbearance plans can apply for refinancing and new purchase mortgages once their loans are current, waiving a previous mandatory 12-month wait, in hopes of homebuyers taking advantage of all-time-low rates.
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