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Friday, October 23, 2020

Black Knight: Number of Homeowners in COVID-19-Related Forbearance Plans Declined Slightly

by Calculated Risk on 10/23/2020 09:19:00 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 20th.

From Forbearance Volumes Continue Modest Improvement from Pandemic-Related Peak

The market saw modest improvement in forbearances this past week, according to data from Black Knight’s McDash Flash Forbearance Tracker.

Forbearance volumes fell by 11K from the prior week, which was the result of larger declines among GSE loans (14K) and portfolio-held and privately securitized loans (2K) being offset by an increase of 5K in FHA/VA loans in forbearance.

Black Knight ForbearanceClick on graph for larger image.

As of Oct. 20, nearly 3 million borrowers remain in active COVID-19 forbearance plans, which represents 5.6% of first lien mortgages. This is a noticeable reduction from the market’s peak of 4.76 million in late May. More than 80% of remaining forbearance plans have had their terms extended with their servicer.

Despite the muted improvement seen this week, overall forbearance volumes are down 623K month-over-month, driven by the large reduction in loans in active forbearance plans at the beginning of the month. This marks a 17% decline from September, showing sustained downward movement in forbearance volumes.
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