Mortgage

Andy Walden on why improved equity positions won’t impede foreclosure starts

Today’s HousingWire Daily episode features an interview with Andy Walden, an economist and vice president of market research for Black Knight Data & Analytics.

During the episode, Walden discusses Black Knight’s most recent Mortgage Monitor report and their finding that despite improvements in equity positions among forbearance participants, homeowner equity alone is not enough to prevent foreclosure starts.

Here is a small preview of the interview, which has been lightly edited for length and clarity:

Alcynna Lloyd: I want to highlight some data now. According to Black Knight, though research shows that just 7% of homeowners in forbearance have less than 10% equity, even after rolling 18 months of deferred payments into their total debt amounts, the risk for foreclosure activity – and ultimately, distressed liquidations – hasn’t gone away. Andy, looking back, did forbearance moratoriums benefit these borrowers’ financial situations, or did it only pause the inevitable?

Andy Walden: I think when you look at the overall numbers, it undoubtedly helped homeowners. We can see there are still 1.6 million homeowners remaining in forbearance, but if we take a broader look at what’s happened over the last 18 months, we’ve had 7.6 million homeowners in forbearance plans over that time. Nearly 80% of those borrowers have left those payment plans early, while over 70% of those borrowers are re-performing on their mortgages or have paid off their mortgages. So, when you kind of look at that broader landscape of what the potential issues could have been in the housing market and what we’re actually seeing play out right now, I think we’ve avoided a lot of pain and a lot of potential foreclosure activity with these forbearance plans and foreclosure moratoriums.

HousingWire Daily examines the most compelling articles reported across HW Media. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsrooms that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Elissa Branch. If you have a pitch or an inquiry relating to podcasts, you can reach our team at alloyd@housingwire.com.

Below is the transcription of the interview. These transcriptions, powered by Speechpad, have been lightly edited and may contain small errors from reproduction:

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    HousingWire Daily

    Hosted by the journalists behind the headlines, HousingWire Daily examines the most compelling mortgage, real estate, and fintech articles reported from the HousingWire newsroom.

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