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Forbearance Volume Continues, but at a Slower Pace
Friday, May 15, 2020
In its May 5 report on the number of
COVID-19 forbearance plans in effect, Black Knight said the rate of new plans
had slowed, but speculated they could pick up again as the May mortgage payments
came due. As of May 12, that had not happened. The company reports that the
number of plans had increased from a revised 4.5 million to 4.7 million. That increase, a net of just under 26,000
new plans per day, is a substantial reduction of more than 85 percent of the daily
rate in early April. However, as most mortgage documents allow a 15-day grace
period before a mortgage is marked as past due and a late fee assessed, borrowers
still had a few days remaining at the end of the reporting period to request
forbearance before any penalty kicked in.
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