The latest data from the Black Knight McDash Flash Forbearance Tracker shows that the number of mortgages in active forbearance fell for the third week in a row. Overall, the number of active forbearance plans is down 57,000 from last week and 158,000 from the peak the week of May 22.
At these levels, mortgage servicers need to advance a combined $3.4 billion a month to holders of government-backed mortgage securities on COVID-19-related forbearances. That’s on top of the $1.4 billion in T&I payments they must make on behalf of borrowers.
Some 6.8% of all GSE-backed loans and 12.1% of all FHA/VA loans are currently in forbearance plans. Volumes were actually up 6,000 among non-agency loans for the week, while forbearance plans on government-backed loans were down a collective 62,000.
Additionally, according to the McDash Flash Payment Tracker, just 15% of those in forbearance had remitted their June payments as of June 15. That’s compared to 46% as of the end of April and 28% as of May month-end.
Forbearances are likely to continue, as the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend their single-family moratorium on foreclosures and evictions until at least August 31, 2020. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The current moratorium was set to expire on June 30.
"To protect borrowers and renters during the pandemic we are extending the Enterprises' foreclosure and eviction moratorium. During this national health emergency no one should worry about losing their home," said Director Mark Calabria.
The FHFA previously announced that Fannie Mae and Freddie Mac would be able to buy loans in forbearance, with note dates on or before June 30, as long as they are delivered by August 31 and have missed just one mortgage payment. Additionally, the agency will be re-proposing the updated minimum financial eligibility requirements for the Enterprises.