The latest data from the McDash Flash Forbearance Tracker shows that the number of mortgages in active forbearance fell for the second consecutive week. Overall, the number of active forbearance plans is down 77,000 from last week and 112,000 from the peak the week of May 22.
As of June 9, 4.66 million homeowners remain in forbearance plans, representing 8.8% of all active mortgages, down from 8.9% last week. Together, they account for just over $1 trillion in unpaid principal ($1,028 billion).
Some 7% of all GSE-backed loans and 12.2% of all FHA/VA loans are currently in forbearance plans. GSE loans saw the greatest reduction, with forbearances falling by 47,000 week-over-week, but decreases were seen across all investor classes – as compared to last week, which saw a decline among government-backed mortgages partially offset by a rise in portfolio and PLS mortgages.
At today’s level, mortgage servicers need to advance a combined $3. 5 billion/month to holders of government-backed mortgage securities on COVID-19-related forbearances. That’s on top of the $1.5 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 $8.8 billion in advances over that four-month period.
According to the McDash Flash Payment Tracker, less than 10% of those in forbearance had remitted their June payments as of June 8.
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.