Mortgage Industry News
« Return to Mortgage Industry News
Servicers on the Hook as 4.1 Million Loans Now in Forbearance
Friday, May 8, 2020
Black Knight reports that, as of May 7,
there were 4.1 million loans in forbearance, up from 3.8 million in the company's
last report which covered plans put into effect by mortgage servicers through
April 30. The new total represents 7.3 percent of all active mortgages and accounts
for $890 billion of unpaid mortgage principal. Fannie Mae and Freddie Mac guaranteed
loans account for 1.91 million of total loans and $390 billion in principal. Those
loans are 6.4 percent of the 27.9 million loans the GSEs have in service. There were 1.33 million Ginnie Mae (FHA and
VA) loans in forbearance plans, accounting for an unpaid balance of $246
billion and 11.0 percent of the Ginnie Mae portfolio of 12.1 million loans. The
remaining 933,000 loans are 7.2 percent of the 12.9 million loans being serviced
for portfolio or private label lenders. The unpaid balance is $253 billion.
Read Full Article