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…
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…
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…
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…
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…
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…
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…
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…
The number of mortgages in forbearance amid the coronavirus pandemic keeps climbing. The latest data released Monday by the Mortgage Bankers Association shows 6.99 percent of mortgage borrowers – or 3.5 million – were in forbearance as of April 19. That’s up from 5.95 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 6.4 percent of all mortgages were in forbearance as of April 23. “Forbearance requests fell relative to the prior week but remain roughly 100 times greater than the early March baseline,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist.” While the pace of job…
The Federal Housing Finance Agency issued a reminder Monday that borrowers who go into forbearance will not have to repay missed payments all at once if their mortgages are backed by Fannie Mae or Freddie Mac. FHFA said the statement was issued to “combat ongoing misinformation” and urged all mortgage lenders to adopt similar policies. “During this national health emergency, no one should be worried about losing their home,” FHFA Director Mark Calabria said. “No lump sum is required at the end of a borrower’s forbearance plan for Enterprise-backed mortgages.” The $2 trillion CARES Act includes a moratorium on foreclosures and the right to forbearance. Forbearance allows borrowers with a federally backed mortgage to put off payments for at least…
