In light of the significant impacts the COVID-19 pandemic is having on the U.S. mortgage market, new analysis of the situation is coming to light. According to the McDash Flash Forbearance Tracker, as of April 23, 2020, more than 3.4 million homeowners — or 6.4% of all mortgages — have entered into COVID-19 mortgage forbearance plans.
“Having a four-month end date on the period in which servicers need to advance principal and interest payments on behalf of homeowners in forbearance is extremely helpful to our servicing clients,” said Black Knight CEO Anthony Jabbour. “Still, even knowing that time limit, with today’s number of forbearance plans, servicers are still looking at more than $7 billion dollars in advances over those four months. And the forbearance numbers are climbing steadily, day by day. Clearly, this remains a challenging situation all around.”
This population represents $754 billion in unpaid principal and includes 5.6% of all GSE-backed loans and 8.9% of all FHA/VA loans. At today’s level, mortgage servicers are bound to advance $2.8 billion of principal and interest payments per month to holders of government-backed securities on COVID-19-related forbearances.
As of April 23, 2020, the McDash Flash Forbearance Tracker found the following:
|
Fannie & Freddie |
FHA & VA |
Other** |
Total |
|
|
Loans in Forbearance* |
1,573,000 |
1,071,000 |
740,000 |
3,416,000 |
|
UPB of Loans in Forbearance ($Bil)* |
$346 |
$197 |
$207 |
$754 |
|
Share of Loans in Forbearance* |
5.6% |
8.9% |
5.7% |
6.4% |
|
Active Loan Count (Mil)* |
27.9 |
12.1 |
12.9 |
53.0 |
Estimated Monthly Advances on Active Forbearance Plans
|
Fannie & Freddie |
FHA & VA |
Other** |
Total |
|
|
Average Monthly P&I Payment* |
$1,115 |
$903 |
$1,726 |
$1,216 |
|
Average Monthly T&I Payment* |
$440 |
$384 |
$557 |
$447 |
|
Aggregate Monthly P&I Payment* |
$31.1B |
$10.9B |
$22.3B |
$64.9B |
|
Aggregate Monthly T&I Payment* |
$12.3B |
$4.6B |
$7.2B |
$23.7B |
|
Est. Monthly P&I Advances on Active |
$1.8B |
$1.0B |
$1.3B |
$4.2B |
|
*Figures in this report are based on observations from Black Knight’s McDash Flash data set and are extrapolated to estimate the full mortgage market |
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**Other category includes held in portfolios, private-labeled securities, or by other entities |
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Charts and graphs illustrating the results Black Knight found are available at this link.
