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First Wave of Forbearances Almost Doubles Delinquency Rates
Friday, May 22, 2020
The years-long downward trend of
mortgage delinquencies appears to have come to an abrupt end in April. Black
Knight, in its "first look" at the month's loan performance data, said the national
delinquency rate shot up 90 percent compared to March and is 86 percent higher
than in April 2019 at 6.45 percent. That rate indicates the percentage
of active loans that were 30 days or more past due but not in foreclosure with 3.40
million loans in that category, 1.61 million more than the prior month and 1.59
more than in April 2019. Black Knight reported earlier this month that, as of
April 30, more than 3.8 million home mortgages had entered forbearance plans.
They subsequently reported that some 46 percent of borrowers in forbearance at
the end of April, had continued to make at least part of their April payment Black Knight counts mortgages for
which payments have not been made as delinquent, even if they are in
forbearance and servicers are not reporting them to credit bureaus under rules
established by the CARES Act. This means that some of the early stage
delinquencies are not in forbearance and that many that are continue to
perform.
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