The latest data from the McDash Flash Forbearance Tracker shows that the number of mortgages in active forbearance fell for the third week in a row. Overall, the number of active forbearance plans is down 57,000 from last week and 158,000 from the peak the week of May 22.
As of June 16, 4.6 million homeowners remain in forbearance plans, representing 8.7% of all active mortgages, down from 8.8% last week. Together, they account for just over $1 trillion in unpaid principal ($1,012 billion).
Some 6.8% of all GSE-backed loans and 12.1% of all FHA/VA loans are currently in forbearance plans. Volumes were actually up 6,000 among non-agency loans for the week, while forbearance plans on government-backed loans were down a collective 62,000.
At today’s level, mortgage servicers need to advance a combined $3. 4 billion/month to holders of government-backed mortgage securities on COVID-19-related forbearances. That’s on top of the $1.4 billion in T&I payments they must make on behalf of borrowers.
Reminder: P&I advance payments have been capped at four months for servicers of GSE-backed mortgages. Given today’s number of loans in forbearance, servicers of GSE-backed loans still face up to $8.4 billion in advances over that four-month period.
According to the McDash Flash Payment Tracker, just 15% of those in forbearance had remitted their June payments as of June 15. That’s compared to 46% as of the end of April and 28% as of May month-end.
Black Knight will continue to provide weekly McDash Flash Forbearance Tracker updates via this blog. Those interested in staying up-to-date on industry developments are encouraged to visit the blog for more information in the coming days and weeks.