Note: Both Black Knight and the MBA (Mortgage Bankers Association) are putting out weekly estimates of mortgages in forbearance.
Overall, the number of active forbearance plans is down 104K from last week for the lowest weekly total active forbearances we’ve seen since the first week of May. This latest drop brings us down 183K from the peak on May 22 and brings us back to the trend of improvement we’d seen throughout June.
According to daily mortgage payment tracking data, as of the end of June, roughly a quarter of homeowners in forbearance had remitted their June payment. That’s as compared to 46% in April and approximately 30% in May.
What remains to be seen is what impact the new spikes in COVID-19 around much of the country will have on forbearance requests moving forward. If they lead to another round of shutdowns – or extensions of those already in effect – and put upward pressure on unemployment numbers, we could see yet another reversal of this trend. The same holds true for the looming expiration of expanded unemployment benefits.
As of June 30, 4.58 million homeowners are in forbearance plans, representing 8.6% of all active mortgages, down from 8.8% last week. Together, they represent just under $1 trillion in unpaid principal ($995B).