Home / Daily Dose / Mortgage Industry ‘Not Out of the Woods’
Print This Post Print This Post

Mortgage Industry ‘Not Out of the Woods’

Black Knight’s Director of Market Research told CNBC in an interview that rising forbearances may continue.

“We’re not out of the woods yet in terms of the coronavirus impact on the mortgage and housing market,” said Andy Walden, Director of Market Research, Black Knight.

Walden said a large number of forbearances were expected to expire at the end of June but borrowers could be deciding to stay in plans longer than expected.

Another item to watch, he said, are unemployment benefits, as many plans are expected to expire at the end of July. He said Black Knight will be watching this trend to see if it impacts the share of mortgages in forbearance.

After three weeks of declining mortgage loan forbearance activity, forbearances surged last week, according to the McDash Flash Forbearance Tracker from Black Knight. As data revealed 8.8% of all active mortgage loans are in a state of forbearance.

This is up from 8.7% of loans that were in active forbearance as of the previous week.

Forbearances peaked the week of May 22 before falling for about three weeks. However, the increases experienced over the past five days have reversed more than half of the declines experienced over the previous few weeks.

In total, about 79,000 additional loans went into forbearance this week, bringing the total number of loans in forbearance to 4.68 million.

The most recent loan forbearance numbers mean servicers will have to pay $3.5 billion per month on behalf of GSE-backed loan holders, plus an additional $1.4 billion in taxes and insurance on behalf of these loans.

View the full video in the embed below.

 

About Author: Mike Albanese

Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville.
x

Check Also

FHA, FHFA Announce Extended Assistance for Homeowners

The Federal Housing Finance Agency (FHFA) announced that the GSEs—Fannie Mae and Freddie Mac—will extend ...

GET YOUR DAILY DOSE OF DS NEWS

Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.