Adam Constantine on MLK Jr.’s impact on housing equality

During the interview, Constantine explains why the industry needs to focus on evoking intentional change rather than launching lackluster initiatives.

Navigating capacity concerns amidst record-high volumes

High loan volumes continues to loom large in the new year, making the “one-stop-shop” approach to the servicing and lending process even more appealing.

Amid record-high origination volumes, mortgage fraud risk is down

CoreLogic's recently released Mortgage Fraud Report is the industry standard for nationwide fraud monitoring and analysis. Read the findings here.

How student loan debt impact homeownership

Student loan expert Catalina Kaiyoorawongs shares her practical and tangible advice for people who feel overwhelmed by their student loan debt.

CoronavirusMortgage

8.8% of U.S. mortgages are in forbearance

Pace of new forbearances slows to 27,000 a day, down 85% from April

About 4.7 million mortgages are in forbearance, representing 8.8% of all home loans, Black Knight said in a Friday report.

The number of borrowers who secured an agreement to delay their payments was up from 4.5 million last week, the mortgage data firm said. The pace of new forbearances slowed to about 27,000 a day, down 85% from April, Black Knight said.

Americans are seeking help with their mortgages in the midst of the biggest labor-market shock since the Great Depression in the 1930s. In the two months since the COVID-19 pandemic hit the U.S., 36.5 million Americans have lost their jobs as states enforced stay-at-home orders to try to stem the spread of the deadly disease.

The loans currently in forbearance total $1 trillion in unpaid principal, Black Knight said. Broken out by investor type, loans backed by Fannie Mae and Freddie Mac account for 7% of mortgages in forbearance, while loans backed the Federal Housing Administration and the Veterans Administration account for 12.4%, the report said.

By the end of June, almost one in 10 mortgages – and possibly one in eight, depending on the condition of the economy – could be in forbearance, Black Knight said in the report.

“Based on the one-week average and assuming an optimistic 10% daily decline moving forward, we would see 4.9 million loans in forbearance by the end of May,” representing 9.2% of active mortgages, the report said. By the end of June the volume could reach 5 million, or 9.4% of mortgages, it said.

In a more pessimistic scenario, based on the daily rate increasing at a faster pace, there could be 5.4 million loans, representing 10% of all U.S. mortgages, in forbearance by the end of May and almost 6.3 million mortgages, or 11.8%, by the end of June, Black Knight said.

Leave a comment

Most Popular Articles

Prepare for the rise in mortgage rates

Economists offer their takes on how high mortgage rates will climb, how lenders will respond and what impact this will have on the housing market. HW+ Premium Content

Jan 18, 2021 By

Latest Articles

2020 ends with 3.4 million loans in delinquency

The final delinquency tally for December is in, with data revealing that by end of 2020, 1.54 million more mortgages were reported delinquent.

Jan 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please