-more-->Together, they account for $754 billion in unpaid principal and includes 5.6% of all GSE-backed loans and 8.9% of all FHA/VA loans.

Regardless of a borrower’s forbearance status, servicers of loans in government-backed securities must make advance principal and interest (P&I) payments each month for these loans.
At today’s level, mortgage servicers would need to advance a combined $2.8 billion per month to holders of government-backed mortgage securities on COVID-19-related forbearances. Another $1.3 billion in lost funds will be faced each month by those with portfolio-held or privately securitized mortgages (some 5.7% of these loans are in forbearance as well).

Ginnie Mae had announced a pass through assistance program through which it will advance principal and interest payments to investors on behalf of servicers. FHFA also very recently announced that P&I advance payments will be capped at four months for servicers of GSE-backed mortgages.

Even so, given today’s current loans in forbearance (and these numbers are climbing every day), servicers of GSE-backed loans still face more than $7 billion in advances over that four-month period.