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Fewer Homeowners Leaving Forbearance
Monday, August 31, 2020
Any decline in the number of mortgages in forbearance
appears to have, at least temporarily, reached a plateau. For the second
straight week Black Knight's survey found little change; only 1,000 fewer
mortgages were in plans during the week ended August 25 than during the
previous period. The company estimates that 3.9 million homeowners continue to
use the COVID-19 relief authorized by the CARES Act and slightly less than
three-quarters are now in an extension of their original 90-day plans. The forbearance
total represents $828 billion in unpaid principal and 7.4 percent of all
mortgages being serviced, the same percentage as the previous week. There are
now about 5.3 percent of all GSE-backed loans in forbearance, numbering 1.474
million. The FHA/VA total is 1.409 million or 11.6 percent and 1.048 million or
8.1 percent of "other" loans, i.e. portfolio loans and those in private label
securities (PLS) are in forbearance.
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