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Surge in Forbearances This Week
Friday, June 26, 2020
After
three weeks of declining totals, Black Knight says the number of active COVID-19
forbearance plans shot up over the past week. As of June 23, there were 4.68
million homeowners in forbearance, an increase of 79,000 from the prior week.
This surge erased about half of the improvement the company has noted in its
weekly report since forbearance plans peaked during the week of May 22. Forbearance
plans are now in place for 8.8 percent of all active mortgages, up 0.1 point in
a week. These loans have an aggregate balance of $1.025 trillion. FHA
and VA loans posted the largest increase, 42,000, bringing the total number of
forborne loans to 1.925 million or 12.5 percent of the two portfolios. Among
loans serviced for Fannie Mae and Freddie Mac, 1.925 million or 6.9 percent are
in plans, up 25,000 from the prior week.
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