Mortgage Industry News
« Return to Mortgage Industry News
Another Wave of Forbearances is Probably On The Way
Friday, August 7, 2020
There was a significant decline in the number of active
COVID-19 related forbearance plans over the past week, but that decrease did
not necessarily mean homeowners were emerging from financial difficulties.
Black Knight said its weekly survey found 101,000 fewer loans in forbearance,
leaving just over 4 million or 7.5 percent of servicer portfolios in active
plans, the smallest share since late April. Those loans represent $852 billion
in unpaid principal. The company says that one reason behind the reduced
number was the expiration of initial plans. It estimated that about a half
million were set to expire at the end of July. An initial wave of 2.5 million expirations
hit at the end of June. More than two-thirds of the plans that remain in
forbearance have had their plans expanded, most for another 90 days. This will
mean another wave of expirations involving about 2.2 million plans will arrive
in September and October.
Read Full Article