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Black Knight Says Forbearance Extensions Could Change Landscape
Friday, February 12, 2021
There was a net decline of 1.6 percent in
the number of mortgages in forbearance during the past week, a decrease of approximately
48,000 loans, as more plans that had expired at the end of January were
processed out of the system. After the number of forborne loans declined by
45,000 the previous week, Black Knight had estimated there were about 47,000
more January expirations pending either removal or a three-month extension of
their forbearance term. The company, in its weekly report on
COVID-19 forbearances, said the expirations driving the improvements over the
past two weeks are of three-month terms. The maximum 12-month period would have
begun to hit at the end of March. However, earlier this week the Federal
Housing Finance Agency (FHFA) announced that borrowers in Fannie Mae and
Freddie Mac (GSE) forbearance plans may be eligible for an additional extension
of up to three months.
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