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

Tuesday, May 12 2020
Lending
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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.

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