HomeBlog HomeBlog PostsMortgage Forbearance Volumes Flatten, Total Roughly Steady at 4.76M

Mortgage Forbearance Volumes Flatten, Total Roughly Steady at 4.76M

Mortgage Forbearance Volumes Flatten, Total Roughly Steady at 4.76M

The latest data from the McDash Flash Forbearance Tracker shows that forbearance volumes have essentially flattened, and in fact new inflows have slowed to a relative trickle.

While the leveling off of active forbearance volumes is welcome news, the focus of industry participants – especially servicers and mortgage investors – is already shifting from pipeline growth to pipeline management.

Black Knight has been tracking loan-level forbearance data via our McDash Flash daily data set to provide the timeliest view of the impact of COVID-19 on the U.S. mortgage market.

As of May 26, 4.76 million homeowners are in forbearance plans, with a net increase of just 7,000 new forbearance plans since last week. That’s in comparison to a 325,000 net increase in the first week of May, and 1.4 million in the first week of April.

Together, the 4.76 million represent 9% of all active mortgages and more than $1 trillion in unpaid principal.  Some 7.2% of all GSE-backed loans and 12.6% of all FHA/VA loans are currently in forbearance plans.

At today’s level, mortgage servicers need to advance a combined $3.6 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.

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.