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Here's How The Pandemic Affected Housing/Mortgage Markets in March
Monday, May 4, 2020
Black Knight's new Mortgage
Monitor restates some of the statistics on COVID-19 related forbearance
plans it released late last week - i.e. that the number of those plans had
reached 3.8 million by April 30. But it makes one additional point. The number
of plans being put in place started to taper down as the middle of the month
approached. Between April 21 and April 30, the number of plans enacted each day
varied between 53,000 and 102,000. This is less than a quarter of the daily
number seen at the beginning of the month. Since servicers typically charge
late fees after the 15th of the month it might indicate that
borrowers are being both proactive and strategic in contacting their servicers. Black Knight says it remain to be
seen if the same type of spike occurs at the beginning of May, but under an
optimistic scenario in which daily forbearance volumes continue to decline by
10 percent per day, we would see a peak of 4.5 million plans in place over the
coming months. But if current volumes continue through mid-June, that number
could spike to 8 million or 16 percent of active mortgages.
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