Number of homeowners in forbearance resumes decline
Number of homeowners in forbearance resumes decline: Black Knight
Jul. 4, 2020 12:06 PM ET|About: New Residential Investment ... (NRZ)|By: Liz Kiesche, SA News Editor
The number or active mortgage forbearance plans for the week ended June 30 have fallen to the lowest point since the first week of May, according to Black Knight's McDash Flash Forbearance Tracker.
The number of active forbearance plans fell by 104K last week and is down 183K from the peak on May 22.
That's an improvement from the previous week, when the number of active forbearance plans increased.
The number of homeowners in forbearance that are still making payments is decreasing, though, to about a quarter vs. 30% in May and 46% in April.
As of June 30, 4.58M homeowners are in forbearance plans, representing 8.6% of all active mortgages, down from 8.8% in the previous week. Together they represent $995B in unpaid principal.
Estimated monthly principal and interest advances on active forbearance plans is $5.6B vs. $5.7B estimated a week ago and estimated tax and insurance advances on the plans are $2.0B vs. $2.1B estimated on June 23.
The week's data, though, won't reflect the recent surges of COVID-19 infections in many parts of the country. If the new spikes lead to new rounds of lockdowns, the number of forbearance plans could also resurge.
Some mortgage servicer tickers: New Residential (NYSE:NRZ), Ocwen Financial (NYSE:OCN), Mr. Cooper Group (NASDAQ:COOP), and PennyMac Financial (NYSE:PFSI).