Mortgage

Forbearance rises with a "doubtless restricted" restoration

One of the lowest exit rates since the pandemic began contributed to a weekly increase in indulgence, according to Black Knight.

Forbearance mortgages outstanding rose 15,000 on February 16 to 2.686 million from 2.671 million the week before. These borrowers represent 5.1% of the 53 million active mortgages in the market, adding up to $ 534 billion in unpaid principal, up from 5% and $ 532 billion weekly.

Another reason for the increase is due to the recent extensions of the forbearance moratorium. First, the Federal Housing Finance Agency announced that borrowers could apply for three additional months of coverage for Fannie Mae and Freddie Mac mortgages. Then President Biden followed the protection of the FHA, VA and USDA loans.

While the move followed the ongoing pattern of slower indulgence and mid-month growth, the total declined 2% m / m and stayed in line with changes since early December.

By loan type, only those backed by Fannie Mae and Freddie Mac fell week by week, dropping 2,000 to a total of 905,000. Government-sponsored mortgages sponsored by the FHA and VA rose 5,000 to a total of 1.119 million. Portfolio and private label securitized loans not covered by the protection of the CARES Act increased 12,000 to a total of 662,000.

"Approximately 204,000 forbearance plans are slated for late February, suggesting that any decline in the forbearance volume is likely to be limited in the coming weeks," wrote Andy Walden, director of market research at Black Knight, in a blog post.

According to Black Knight's analysis, servicers are required to make monthly advances of $ 3.3 billion in principal and interest payments and $ 1.2 billion in taxes and insurance per month. These are broken down into estimates of $ 1 billion and $ 400 million for government-sponsored corporate loans, $ 1 billion and $ 400 million for FHA and VA, and $ 1.1 billion and $ 400 million for private label.

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