Friday, October 16, 2020

Black Knight: Number of Homeowners in COVID-19-Related Forbearance Plans Increased Slightly Following Large Decline Last Week

by Calculated Risk on 10/16/2020 10:50:00 AM

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

This data is as of October 13th.

From Forbearance Volumes Increase Slightly Following Largest Weeklyl Drop

Following last week’s largest weekly decline in COVID-19-related forbearances since the pandemic began, the market saw a slight uptick of 19k loans in forbearance this week.

New data released today from Black Knight’s McDash Flash Forbearance Tracker shows that though volumes increased week-over-week, there is still reason to be optimistic about the state of U.S. mortgages in forbearance.

We are seeing the national forbearance rate hold steady at 5.6% week-over-week, with just under 3 million homeowners remaining in active forbearance. This number is down from a peak of 4.76 million in late May.

Black Knight ForbearanceClick on graph for larger image.

All in, there are currently 708k fewer loans in forbearance now than the same time last month, which is a 19% decline. Of the remaining 2,988,000 current forbearance cases, 78% have had their terms extended with their servicer.