8.16% Of U.S. Mortgages In Forbearance

The share of mortgage loans in forbearance climbed slightly last week to 8.16 percent, a second straight week of relatively small increases in the number of borrowers who have paused their payments during the coronavirus pandemic. The Mortgage Bankers Association said the percentage of mortgages in forbearance increased from 7.91 percent the week before and 7.54 percent a week earlier. All told, the MBA estimates that 4.1 million homeowners are now in forbearance plans for the week ending May 10. “The pace of forbearance requests continued to slow in the second week of May, but the share of loans in forbearance increased,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “There has been a pronounced flattening in loans…

FHFA Announces Deferral Option On GSE Mortgages

The Federal Housing Finance Agency announced Wednesday that homeowners in forbearance can now opt to repay missed payments on Freddie Mac and Fannie Mae loans at the time their home is sold, when it is refinanced or at the end of the mortgage. “For homeowners in forbearance due to COVID-19, payment deferral allows them to make up missed forbearance payments when they sell their home or refinance,” said FHFA Director Mark Calabria. “This new forbearance repayment solution responsibly simplifies options for homeowners while providing an additional tool for mortgage servicers.”  Calabria added, “Borrowers who can pay their mortgage should, because missed payments remain an obligation that will ultimately have to be repaid.” Eric Kaplan, the Director of the Milken Institute…

U.S. Mortgages In Forbearance Top 4 Million

The share of mortgages in forbearance in the United States has swollen to 7.91 percent, but the rate of growth has slowed in recent weeks, according to the latest report by the Mortgage Bankers Association released Monday. The MBA estimates that 4 million American homeowners were in forbearance plans as of May 3. “With the calendar turning to May, the share of loans in forbearance increased, but the pace of the increase and incoming forbearance requests continued to slow,” said Mike Fratantoni, MBA Senior Vice President and Chief Economist. “The dreadful April jobs report showed a decline of more than 20 million jobs, and a spike in the unemployment rate to the highest level since the Great Depression. It will…

Mnuchin Urges All Lenders To Offer Forbearance

Treasury Secretary Steven T. Mnuchin said Monday that all mortgage lenders should work to find ways to allow borrowers to pause their mortgages during the coronavirus pandemic and tack the payments on at the end of their loans. Mnuchin appeared on CNBC’s Squawk on the Street to discuss the government’s economic response to the pandemic – and said he is “quite pleased” about how support for mortgage borrowers is working. Jim Cramer of CNBC asked Mnuchin, “Could you please tell the mortgage companies, `Look, we think you ought to do mortgage forbearance, perhaps lengthen what the mortgages are.’ … What a great opportunity to be able to say, `Come on, this is a time for forbearance. This is a time…

Black Knight: Forbearance Count Tops 4 Million

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…

MBA: 7.54% Of Mortgages In Forbearance

The latest data released Monday by the Mortgage Bankers Association shows 7.54 percent of mortgage borrowers – or 3.8 million – were in forbearance as of April 26. That’s up from 6.99 percent a week earlier. On March 2, roughly 0.25 percent of loans were in forbearance. MBA’s numbers are even higher than those released Friday by Black Knight, which estimated that 7.3 percent of mortgages were in forbearance as of April 30. “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…

Black Knight: 3.8 Million Mortgages In Forbearance

More than 3.8 million homeowners – or 7.3 percent of all mortgages – are now in forbearance as millions of Americans are out of work during the coronavirus pandemic, according to a new analysis released Friday by Black Knight. Taken together, those mortgages make up $841 billion in unpaid principal, Black Knight estimates. The analysis found that as of April 30: 1.7 million Fannie and Freddie loans (or 6.1 percent) were in forbearance.1.26 million FHA and VA loans (or 10.5 percent) were in forbearance.863,000 of all other loans (or 6.7 percent) were in forbearance. The $2 trillion CARES Act includes a moratorium on foreclosures and the right to forbearance on federally backed mortgages. Forbearance allows borrowers to put off payments…

Freddie CEO: Greatest Housing Challenge In Decade

By Jim Perskie Freddie Mac CEO David Brickman said Thursday the housing market is “facing its greatest challenge in more than a decade” and that the impact of the coronavirus will be felt over the next year, at least. Brickman expected home sales – and perhaps home prices – to fall significantly in the second quarter before beginning to recover. “While home prices increased in the first quarter, the future effect of the COVID-19 pandemic is highly uncertain and dependent on the pace of economic recovery,” he said in discussing Freddie Mac’s first quarter financial results. “The decline in home prices could be significant if forbearance and foreclosure mitigation do not limit the effect on home prices.” The Labor Department…

HUD Watchdog: Some Lenders Hiding Forbearance Info

The watchdog at the U.S. Department of Housing and Urban Development is accusing mortgage lenders of providing “incomplete, inconsistent, dated and unclear guidance” to borrowers seeking relief from mortgage payments during the coronavirus pandemic. Brian T. Pattison, the assistant Inspector General at HUD, reviewed the websites for 30 lenders who have loans insured by the Federal Housing Administration to determine if they were effectively communicating about forbearance opportunities available to borrowers.  Pattison concluded, “Lack of clear and consistent guidance from FHA servicers and enforcement by FHA of that guidance allows servicers to leave struggling homeowners unable to make informed decisions about paying their mortgages and relief that may be available to them during this pandemic.” Pattison’s report did not name…

No Loan For You! Credit Market Getting Squeezed

By Jim Perksie Historically low interest rates may not benefit many would-be homebuyers as the credit market is tightening considerably during the coronavirus pandemic. Redfin announced Wednesday that its Mortgage Credit Availability Index dropped 16 percent in March and is at its lowest level in five years. The index measures how easy it is to get a home loan. “Thousands of Americans who were priced out of the housing market due to the affordability crisis of the past decade might finally see homeownership as within reach, especially given historically-low mortgage rates. But unfortunately, they are now faced with another roadblock and may not be able to get a loan,” Redfin senior economist Sheharyar Bokhari said. “Home equity is the primary way for…