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Forbearances Decrease by 4%
Friday, September 4, 2020
The number
of homeowners with mortgages in COVID-19 related forbearance plans dropped during
the week ended September 1 after several weeks when there was little change.
Black Knight said its weekly survey found 147,000 fewer borrowers in plans than
the previous week, a decline of about 4 percent. The company says last week's
decrease means there are about 1 million fewer loans in forbearance than at the
peak in May. Seventy-five percent of those remaining are in extensions of their
original plan. A total of 3.784
million loans remain in forbearance, 7.1 percent of the estimated 53 million
loans that are currently active. Those
loans represent $804 billion in unpaid principal. The decline
was spread across all loan types with the largest improvement, 75,000 loans, in
portfolio-held and private label securitized (PLS) loans. That leaves 973,000 or
7.5 percent of those loans, in forbearance. The number of GSE mortgages fell by
49,000 to 1.425 million or 5.1 percent of those portfolios. FHA/VA loans saw a
more modest weekly decline of 23,000 to 1.386 million or 11.5 percent.
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