The typical mid-month forbearance plan growth was only the second weekly volume surge since late February, according to Black Knight.
Forbearance mortgages outstanding rose 16,000 to 2.179 million as of May 18, from 2.163 million the week before. These criminal borrowers account for 4.1% of the 53 million active mortgages in the market, adding up to $ 428 billion in unpaid principal compared to $ 426 billion in the same period last year.
Despite increased forbearance restart activity after two weeks of rapid decline, more than 1 million forborne borrowers could roll off by the end of the second quarter.
"Nearly 190,000 plans are still listed as of May 2021, which offers a moderate opportunity for additional improvement over the next two weeks, and more specifically in early June," wrote Andy Walden, director of market research at Black Knight, in a blog post. "Another 830,000 plans are currently scheduled for renewal or removal reviews in June. This will be the final quarterly review before early forbearers hit their 18-month plan expiration times later this year."
By loan type, only those backed by Fannie Mae and Freddie Mac fell week by week, dropping 1,000 to a total of 683,000. Government-sponsored mortgages sponsored by the FHA and VA rose 4,000 in total to 885,000. Portfolio securitized loans and trademarks that are not protected by the CARES Act increased by 13,000 to a total of 611,000.
Servicers have to make monthly advances of approximately $ 2.6 billion in principal and interest payments and $ 1 billion in taxes and insurance per month, according to Black Knight. That breakdown to estimates of $ 800 million and $ 300 million for government-sponsored corporate and government-assisted loans, and $ 1 billion and $ 300 million for private label.