Covid-Related Forbearance Archives

By ERIN FLYNN JAY Foreclosure numbers are up by double-digit numbers and industry leaders say they will continue to rise this year. Earlier this month, ATTOM, a curator of land, property, and real estate data, released its Year-End 2023 U.S. Foreclosure Market Report, which shows foreclosure filings — default notices, scheduled auctions, and bank repossessions — were reported on 357,062 U.S. properties in 2023, up 10% from 2022 and 136% from 2021. CEO Rob Barber told The Mortgage Note several elements may be contributing to the rise in foreclosures. “Key among them is the increase in interest rates, especially for adjustable-rate mortgages, leading to higher monthly payments for homeowners. Additionally, escalating unemployment rates are a concern,” Barber said. Barber said…

Active forbearance plans fell by 45,000 plans (-5%) last week, according to Black Knight’s blog, Vision. GSE plans fell by 24,000 (-9%), while forborne loans held by portfolios and PSL dropped 12,000 (4%). FHA/VA loans in forbearance fell by 3%, or 10,000 plans. New plan starts and restarts also decreased after weeks of climbing. In a recent webinar, RealtyTrac EVP Rick Sharga and Mortgage Policy Advisors Managing Director and Five Star Global Chairman Ed Delgado predicted 2022 would look much like 2021, with low rates of new forbearance plans and serious delinquencies. “The presumption at the start of the pandemic was that there was going to be this gradual swelling of foreclosures, as forbearances expired and consumers had nowhere to…