With COVID-19 infection rates and unemployment spreading since Thanksgiving, mortgages in coronavirus-related forbearance rose by 37,000, according to Black Knight. Just
Almost 2.79 million borrowers were in active plans as of Dec. 15. The outstanding loans represent a 5.3% share of all active mortgages, combining for an unpaid principal balance of $563 billion. These totals gradually descended from
"Since the recovery started, we’ve regularly seen the strongest declines early in the month, as expiring forbearance plans are removed," Walden said in the report. "With more than 550,000 plans still set to expire at the end of December, we could see more positive news in terms of plan removals in the first week of January. It bears repeating that COVID-19 cases continue to spike nationwide and unemployment claims have risen in recent weeks."
Active forbearances grew for each loan type. Government-sponsored enterprise loans gained 5,000 more forbearances from the week earlier, going to 970,000. Portfolio and private-label securitized loans — which don't fall under
Black Knight's estimates show mortgage servicers will need advances of $3.4 billion in principal and interest payments and $1.2 billion due in taxes and insurance per month. Those divvy up to $1.1 billion and $400 million for Fannie Mae and Freddie Mac mortgages, $1 billion and $400 million for FHA and VA, and $1.2 billion and $400 million for private-label.