Mortgages in active forbearance grinds higher late in the month: Black Knight

Aug. 27, 2021 7:00 AM ETRITM, COOP, OCN, PFSIBy: Liz Kiesche, SA News Editor20 Comments

Mortgage forbearance agreement is shown on the business photo using the text
Andrii Dodonov/iStock via Getty Images

  • The number of mortgages in active forbearance once again edges up late in the month, increasing by 12K since the a week ago Tuesday, according to the Black Knight McDash Flash Forbearance Tracker.
  • As of Aug. 24, some 1.76M borrowers remain in COVID-19-related forbearance plans, including 1.9% of GSE, 5.8% of FHA/VA, and 4.1% portfolio held and privately securitized mortgage.
  • The increase was driven by a 10K increase in portfolio/PLS loans and a 3K rise in FHA/VA volume; GSE plans declined by 1K.
  • Compared with the same time last month, plan volumes have declined by 132K, or 7%. More than 150K plans are scheduled for review for extension or removal though the final wee of August.
  • The number of reviews, though, jump to almost 670K for September, with 415K of them set to reach their final expiration based on current allowable forbearance term lengths.
  • Estimated monthly principal and interest advances on active forbearance plans at $2.1B and estimated monthly tax and insurance advances at $0.8B were unchanged from the previous week.
  • Mortgage servicers that may be affected include: New Residential (NYSE:NRZ), Mr. Cooper (NASDAQ:COOP), Ocwen Financial (NYSE:OCN), and PennyMac Financial Services (NYSE:PFSI).
  • Late last month, New Residential Q2 earnings reflect MRS amortization, slowing loan origination

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