Skip to main content

Forbearance Numbers Are Back Above 3 Million

Oct 30, 2020
forbearance loans
Director of Events

Data from Black Knight, Inc. showed that forbearance activity in October has driven the number of active forbearances back to more than three million. This translates to 5.7% of all active mortgages and about $619 billion in unpaid principal, a slight increase from last week's 5.6%, according to the report.

In just this past week alone, Black Knight reported that active forbearances rose by 31,000. The company attributes this increase to limited extension and removal activity, as well as an increase in forbearance starts. There were also 50,000 forbearance removals this week, the lowest of any week during the recovery stage. Additionally, there were 89,000 extensions, the fewest that Black Knight has reported in nine weeks.

"In total, forbearance plan starts are up 15% in October compared to the month prior, with the rise driven by borrowers reactivating previously expired plans," according to the report. "New forbearance activations are down 7% from September, while re-activations are up 50%. This is most likely in reaction to the large volume of plans than were removed early in the month."

"Some 3.9% of all GSE-backed loans and 9.7% of all FHA/VA loans are currently in forbearance plans. Another 5.7% of loans in private-label securities or banks’ portfolios are also in forbearance. Since last week, GSE forbearances have declined by 1,000, while FHA loans saw an increase of 14,000, with a jump of 18,000 among loans held in banks’ portfolios and private-label securities."

Click here to view the full report.

About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
Oct 30, 2020
Fewer Canadians Hunt For U.S. Property

Largest component of international buyers in U.S. takes more than 25% hit

Jul 08, 2025
Fannie, Freddie Now Allow Lenders To Use VantageScore 4.0

Lenders will keep tri-merge credit scoring model; what this shift means

Fairway Independent Mortgage Corporation Announces Rebranding

Now Fairway Home Mortgage, company also donates $1M to support relief efforts in deadly Texas flooding

Jul 07, 2025
FHFA Chief Officially Calls For Investigation Of Federal Reserve Chairman Powell

Alleges Powell lied in testimony to Congress regarding Fed building renovations, says Fed Chair should be fired

BBB Will Impact Homeowners, Buyers

U.S. House and Senate must agree on certain tax, mortgage insurance premium deductions

FHFA, Fannie, Freddie Rebrand CSS To U.S. Financial Technology To Boost Recognition, Sell More MBS Services

Meanwhile, FHFA also considering renaming LLPAs for mortgages the GSEs acquire