Friday, November 27, 2020

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

by Calculated Risk on 11/27/2020 08:57:00 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 November 23rd.

From Black Knight: Forbearances Numbers See Another Slight Uptick

Our weekly snapshot of daily forbearance tracking data showed another slight uptick in active forbearance plans through Monday, November 23. It’s worth noting that this week’s data represents a slightly truncated view – normally, we report forbearance numbers through the Tuesday of any given week.

After rising by some 30,000 last week, active forbearances were up another 27,000 from last Tuesday.

We should keep in mind that mild increases like this have been common in the middle of the month. Since the recovery started, the strongest declines have typically been seen early in the month, as expiring forbearance plans are removed. The performance of the last two weeks has continued this trend.
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Black Knight ForbearanceClick on graph for larger image.

Despite this week’s increase, the number of active forbearances remains down 7% (-207,00) from last month, roughly equivalent to the declines we’d seen in August and September.

In total, as of November 23, there are now 2.78 million homeowners in active forbearance plans. Together, representing approximately 5.3% of all active mortgages – up from 5.2% from last week – they account for approximately $564 billion in unpaid principal.
emphasis added