Estimated reading time: 0 minutes, 45 seconds

Nearly 4.1M in Forbearance, 7.7% of All Mortgages: Black Knight

Tuesday, May 12 2020
Lending
Written by 

As of May 7, nearly 4.1 million homeowners are in forbearance plans, representing 7.7% of all active mortgages. Together, they account for $890 billion in unpaid principal and includes 6.4% of all GSE-backed loans and 11% of all FHA/VA loans. That’s according to recent data from Black Knight.

!--more-->At today’s levels, mortgage servicers need to advance a combined $4.5 billion per month to holders of government-backed mortgage securities on COVID-19-related forbearances. Another $2.1 billion in lost funds will be faced each month by those with portfolio-held or privately securitized mortgages (some 7.2% of these loans are in forbearance as well).

Remember, FHFA has said that P&I advance payments will be capped at four months for servicers of GSE-backed mortgages. Given today’s number of loans in forbearance, servicers of GSE-backed loans face $8 billion in advances over that four-month period. There is no such cap on the additional $800 million in monthly T&I advances.

Read 1207 times
Rate this item
(0 votes)
More in this category: « Stearns Lending Promotes Steve Smith to President Why California May Be the Best State for Your New Lending Business »

FOLLOW US

PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.
Ok Decline