True Stories: Hybrid, eNote and RON Implementation

Join expert panelists that will discuss the status of federal legislation, trends in digital adoption and how best to prepare your organization for the next generation of lending processes.

Spruce’s Patrick Burns on innovation in title technology

In the season finale of Housing News season 5, Spruce CEO discusses heightened investor interest in title tech, innovation and fintech adoption.

Top CFPB official “hates” QM rules, jeopardizing safe harbor

A top CFPB official in charge of the rule-making process has heavily criticized the agency's own qualifying mortgage rule, jeopardizing safe harbor.

Don’t sleep on non-QM products

Now is the perfect time for originators to consider expanding to non-QM products – to grow business, diversify their offerings and to ensure an opportunity to better serve their customers.

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

Volume-hungry mortgage lenders loosen credit standards

Mortgage credit availability loosened up in April by 2.2%, per the MBA. The drivers were in conventional mortgages and GSE programs for ARMs and high-balance loans.

May 11, 2021 By

Latest Articles

Genworth mortgage insurance arm IPO on ice

Genworth Financial said it will delay the initial public offering of its recently rebranded mortgage insurance arm, Enact Holdings.

May 13, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please