Friday, June 12, 2020

Black Knight: Number of Homeowners in COVID-19-Related Forbearance Plans Declines Slightly for the second consecutive week

by Calculated Risk on 6/12/2020 08:27:00 AM

Note: Both Black Knight and the MBA (Mortgage Bankers Association) are putting out weekly estimates of mortgages in forbearance.

From Black Knight:

The number of homeowners in active forbearance on their mortgages fell for the second consecutive week. Overall, the number of active forbearance plans is down 77K from last week, and 112K from the peak the week of May 22.

Black Knight ForbearanceClick on graph for larger image.

As of June 9, 4.66 million homeowners remain in forbearance plans, representing 8.8% of all active mortgages, down from 8.9% last week. Together, the 4.66M represent just over $1 trillion in unpaid principal ($1,028B). Some 7% of all GSE-backed loans and 12.2% of all FHA/VA loans are currently in forbearance plans. GSE loans saw the greatest reduction, with forbearances falling by 47K week-over-week, but decreases were seen across all investor classes – as compared to last week, which saw a decline among government-backed mortgages partially offset by a rise in portfolio and PLS mortgages.
emphasis added