Monday , March 1 2021
Home / Calculated Risk / Black Knight: Number of Homeowners in COVID-19-Related Forbearance Plans Decreased

Black Knight: Number of Homeowners in COVID-19-Related Forbearance Plans Decreased

Summary:
Note: Both Black Knight and the MBA (Mortgage Bankers Association) are putting out weekly estimates of mortgages in forbearance.This data is as of January 5th.From Black Knight: Slow Improvement in Forbearance Numbers ContinuesThe number of mortgages in active forbearance declined slightly once again this week, continuing the trend of very slow improvement seen in recent weeks. Total active forbearance plans are now down 1.5% from last month. This gradual rate of improvement sets the stage for a large number of plans to still be in active status when the first wave of forbearances begins to expire at the end of March....New plans edged higher thanks to an increase in restart activity, but overall, these numbers remain below pre-holiday levels. Forbearance starts were up 10,000 from last

Topics:
Calculated Risk considers the following as important:

This could be interesting, too:

Calculated Risk writes Monday: ISM Manufacturing, Construction Spending

Reuters writes China’s manufacturing activity growth slips to lowest level since May

Alison Tudor-Ackroyd writes China electric-vehicle war: top 5 investment funds in electric vehicles to watch out for in 2021

Calculated Risk writes February 28 COVID-19 Test Results and Vaccinations

Note: Both Black Knight and the MBA (Mortgage Bankers Association) are putting out weekly estimates of mortgages in forbearance.

This data is as of January 5th.

From Black Knight: Slow Improvement in Forbearance Numbers Continues
The number of mortgages in active forbearance declined slightly once again this week, continuing the trend of very slow improvement seen in recent weeks. Total active forbearance plans are now down 1.5% from last month. This gradual rate of improvement sets the stage for a large number of plans to still be in active status when the first wave of forbearances begins to expire at the end of March.
...
New plans edged higher thanks to an increase in restart activity, but overall, these numbers remain below pre-holiday levels. Forbearance starts were up 10,000 from last week but remain below the weekly average heading into the holidays by 22,000. With some 370,000 active plans up for review for extension/removal through the end of January, the potential for additional removals remains, although it’s expected to be more moderate than what had been seen early in the recovery.
...
Black Knight: Number of Homeowners in COVID-19-Related Forbearance Plans DecreasedClick on graph for larger image.

Overall, as of Jan. 12, 5.1% of all mortgages are in forbearance, which equates to 2.73 million. Altogether, they represent $545 billion in unpaid principal, a staggering number for the U.S. housing market. Of the homeowners in active forbearance, about 15% have remained current on their mortgage payments, and 83% have had their plans extended at some point since the pandemic began to impact the American economy last March.
emphasis added

Leave a Reply

Your email address will not be published. Required fields are marked *