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Forbearance Problem Remains Huge, But The Pace is Slowing
Monday, May 4, 2020
The Mortgage
Bankers Association (MBA) has confirmed the findings that Black Knight reported
on Monday morning that, while the number of forbearances in effect as a result
of the COVID-19 pandemic continues to rise, the rate of increase slowed as
April progressed. MBA said its weekly survey found the number of loans in a
forbearance plan increased from 6.99 percent of loans being serviced on April
19 to 7.54 of the total as of April 26. MBA estimates that 3.80 million
homeowners are now in forbearance. "The share of loans in forbearance
increased once again in the last full week of April, but the pace of new
requests slowed," said Mike Fratantoni, MBA's Senior Vice President and Chief
Economist. "With millions more Americans filing for unemployment over the week,
the level of job market distress continues to worsen. That is why we expect
that the share of loans in forbearance will continue to grow, particularly as
new mortgage payments come due in May."
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