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Forbearance Agreements Hitting Smaller Servicers Hard
Friday, April 17, 2020
It is only a little more than a month into the COVID-19 crisis, but mortgage forbearances are already adding up. Black Knight has begun tracking that activity extrapolating an estimate of the active mortgage universe from a sample of loans. The company will be providing forbearance information on a daily basis. Black Knight estimates that, as of April 16, there were 2.94 million homeowners who had entered into forbearance agreements, temporarily delaying or reducing their required monthly mortgage payments. The unpaid principal balance of those mortgages is $651 billion. The loans account for 5.5 percent of the current total of 53 million active mortgages and includes 4.9 percent of all Fannie Mae and Freddie Mac (GSE) guaranteed loans, a total of 1.37 million, and 7.6 percent (922,000) of those backed by FHA and the VA. An estimated 615,000 of the loans in forbearance are being serviced for other lenders.
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