Skip to main content

Black Knight: Weekly Forbearance Volume In Decline

Jun 05, 2020
Photo credit: Getty Images/designer491

Black Knight’s latest McDash Flash Forbearance Tracker finds that active forbearance volumes decreased by nearly 34,000 over the past week, marking the first weekly decline in forbearance volume since the COVID-19 pandemic began.
 
The study found that, of May 26, 4.73 million U.S. homeowners were in forbearance plans, representing 8.9% of all active mortgages and more than $1 trillion in unpaid principal. Some 7.1% of all GSE-backed loans and 12.3% of all FHA/VA loans are currently in forbearance plans.
 
A decline of 43,000 forbearances among government-backed mortgages from May 26 to June 2, was partially offset by an increase of 9,000 among mortgages in bank portfolios and private label securities.
 
Black Knight’s latest McDash Flash Forbearance Tracker finds that active forbearance volumes decreased by nearly 34,000 over the past week
 
“While this decline is welcome news, there are still concerning signs in the data,” explained Black Knight CEO Anthony Jabbour. “According to Black Knight’s McDash Flash Payment Tracker, far fewer homeowners in forbearance remitted May payments than did in April. If that trend holds true through the end of the month, the market should be prepared for another likely rise in the delinquency rate for May. Also, expanded unemployment benefits are scheduled to end on July 31. It remains to be seen how that will impact both forbearance requests and overall mortgage delinquencies.”
 
The latest unemployment numbers from the U.S. Department of Labor, found that, for the week ending May 30, the advance figure for initial claims was 1,877,000, a decrease of 249,000 from the previous week's revised level.
 
At today’s level, mortgage servicers need to advance a combined $3.3 billion/month to holders of government-backed mortgage securities on COVID-19-related forbearances. That’s on top of the $1.5 billion in T&I payments they must make on behalf of borrowers.
 
According to Black Knight, a significantly lower share of homeowners in forbearance had remitted May payments (22%) than in April (46%), pointing to another likely rise in the delinquency rate for May.

 
About the author
Published
Jun 05, 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