- Some 3.8M borrowers, or 7.1% of active mortgages, still delaying monthly payments
- Number of mortgages in active forbearance dropped by 147,000, or -4%, according to Black Knight
- 75% of 3.8M borrowers extended their terms from initial three-month program
According to Black Knight, there are approximately 3.8M borrowers who are continuing to delay their monthly mortgage payments via the CARES Act COVID forbearance program. This number is an improvement of -4%, or -147,000, over last week’s number that approached nearly 4M.
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Still, this number of 3.8M borrowers in forbearance represents roughly 7.1% of all active mortgages. Three quarters of this 3.8M borrowers have extended their initial three-month terms that were set to expire in August. More than 2M borrowers are in forbearance plans set to expire in late September.
The good news regarding forbearance was that fewer borrowers requested forbearance plans in August. Forbearance starts in the first four weeks of August were down -13% compared to July. Andy Walden, economist and director of market research with Black Knight, said, “September may provide the true test, though, as impacted borrowers were still receiving full expanded unemployment benefits up through July 31.”
The biggest declines in forbearances came from loans held by banks, private-label securities, Fannie Mae and Freddie Mac. Here is the breakdown:
- 5% of all Freddie/Fannie loans in forbearance
- 5% of all FHA/VA loans in forbearance
- 5% of all loans with private label securities or banks in forbearance.
Thanks to CNBC.