While the number of mortgages in forbearance continues to climb, the rate of increase is slowing down.
Nearly 4.1 million mortgage borrowers – or 7.7 percent of all mortgages – were in forbearance as of Thursday, according to estimates from Black Knight. That’s up from 3.8 million (7.3 percent) a week earlier.
The analysis found:
- 6.4 percent of Fannie and Freddie loans were in forbearance.
- 11 percent of FHA and VA loans were in forbearance.
- 7.2 percent of all other loans were in forbearance.
All told, the 4.1 million mortgages represent $890 billion in unpaid principal.
Black Knight notes, regardless of a borrower’s forbearance status, servicers of loans in government-backed securities must make advance principal and interest as well as tax and insurance payments each month for these loans. At today’s level, mortgage servicers would need to advance $4.5 billion in P&I and T&I to holders of government-backed mortgage securities on COVID-19-related forbearances each month.”
The Mortgage Bankers Association will release its weekly estimate of loans in forbearance on Monday.