As the impact of the COVID-19 pandemic on the U.S. mortgage market has grown, Black Knight is now tracking loan-level forbearance data via our McDash Flash daily data set.
The latest data from the McDash Flash Forbearance Tracker shows that as of April 30, more than 3.8 million homeowners are in forbearance programs with their lenders. Together, they represent 7.3% of the entire active mortgage universe and $841 billion in unpaid principal.
This population encompasses 6.1% of all GSE-backed loans and 10.5% of 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 $3 billion to holders of government-backed mortgage securities on COVID-19-related forbearances each month. Another $1.5 billion in lost funds will be faced each month by those with portfolio-held or privately securitized mortgages.
Given FHFA’s recently announced four-month limit on advance obligations, servicers of GSE-backed mortgages could still face nearly $8 billion in advances based on the number of forbearance plans through April 30.
Much more detail on the impact of COVID-19 on the mortgage and real estate industries, as well as challenges and solutions relevant to individual market segments, can be found in Black Knight’s special white paper, available to download for free at this link. Black Knight will continue to provide weekly McDash Flash Forbearance Tracker updates via Vision, the Black Knight 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.