Homeowners in forbearance rise after three weeks of dropping
Homeowners in forbearance rise after three weeks of dropping: Black Knight
Jun. 26, 2020 9:34 AM ET|About: New Residential Investment ... (NRZ)|By: Liz Kiesche, SA News Editor
Overall, the number of homeowners in active forbearance rose this week after three straight weeks of declines, according to Black Knight's McDash Flash Forbearance Tracker.
The number of active forbearance plans climbed 79K from last week, erasing about half the improvement seen since the peak of May 22; increases were seen in each of the past five business days.
As of June 23, some 4.68M homeowners are in forbearance plans, representing 8.8% of all active mortgages, up from 8.7% last week; the total represents just over $1T in unpaid principal.
At todayís level, mortgage servicers may need to advance up to $3.5B/month to holders of government-backed mortgage securities on COVID-19-related forbearances. Thatís on top of up to $1.4B in tax and insurance payments they must make on behalf of borrowers.
Although principal and interest payments have been capped at four months for servicers of GSE-backed mortgages, the servicers still face up to $8.4B in advances over that four-month period, given today's numbers.
Mortgage servicers: New Residential (NYSE:NRZ), Mr. Cooper (NASDAQ:COOP), Ocwen Financial (NYSE:OCN), and PennyMac Financial (NYSE:PFSI).