Key Highlights

  • The more unemployment figures jump, the more the number of mortgages go into forbearance
  • As +26M have filed for unemployment insurance benefits in the last 5 weeks, according to the Labor Department, data from Black Knight indicates some 3.416M mortgages now in forbearance,
  • This 3.416M in forbearance represents an increase of 477,000 from prior week

Filings for unemployment insurance benefits go hand in hand with applications for mortgage forbearance. The Labor Department indicated that an additional 4.43M people filed for unemployment benefits the third week in April for a total of 26M and Black Knight indicated that an additional 477,000 mortgages went into forbearance that same week for a total of 3.416M.

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This 3.416M mortgages currently in forbearance represents 6.4% of all mortgages.

It’s worth breaking down mortgages in forbearance by loan types.

  • Fannie Mae and Freddie Mac backed loans have approximately 1,573M loans currently in forbearance
    • This figure represents 5.6% of the GSE’s total 27.9M or $348M in unpaid principal balance.
    • Mortgage servicers will be required to advance an estimated $1.8B in principal and interest payments each of the now time limited four months for the GSE loans in forbearance
    • According to Black Knight CEO Anthony Jabbour, “…even knowing that time limit, with today’s number of forbearance plans, servicers are still looking at more than $7B in advances over those four months. And the forbearance numbers are climbing steadily, day by day. Clearly, this remains a challenging situation all around.”
  • Federal Housing Administration and Department of Veterans Affairs are backing nearly 9% now in forbearance, an increase of 150,000 loans in one week
    • 1,071M FHA or VA loans now in forbearance
  • Approximately 5.7% of loans in portfolio of privately securitized also in forbearance, an increase from 4.8% the week before.

 

Thanks to Black Knight for all data and HousingWire’s Ben Lane.

Also read: Why It’s Now Harder to Get a Mortgage/Refinance, Podcast: Breaking News, SBA PPP Program | 12 Mortgage Forbearance, Podcast: What The Top Agents Are Doing NOW | Updated Info, Agent Bailouts Programs