Black Knight Takes Deep Dive into COVID-19 Effects

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Black Knight Inc. has tapped its own property, home-price and loan-level mortgage data, proprietary analytics, and third-party information to develop a white paper that provides an in-depth evaluation of the impact COVID-19 may have on the housing and mortgage industries.

“These are unprecedented times, for the world as a whole and for the real estate and mortgage industries specifically,” says Black Knight CEO Anthony Jabbour. “The regulatory and operational issues this situation presents are significant. Our clients are already working to assist consumers under the new regulatory requirements of the CARES Act and will be required to make additional changes to effectively deal with other rapidly growing business challenges.”

Many aspects of the real estate and mortgage process, including property showings, listings and sales – as well as critical services, such as inspections and appraisals – are already being affected due to social distancing. Disruption to many necessary aspects of real estate closings, including the fact that many county recorder offices are now closed, is exacerbating the issue.

Market and rate volatility are bringing additional uncertainty to the housing market, home affordability, refinance incentive and portfolio retention risk. More than 10 million Americans have filed for unemployment in the weeks since COVID-19 was labeled a pandemic. These rising unemployment rates have already resulted in a surge of COVID-19-driven forbearance requests and associated operational challenges, and increased mortgage defaults are likely.

Further, as potentially millions of Americans seek forbearances from their mortgage lenders, servicers will ultimately wrestle with many billions of dollars in principal and interest payment advances that need to be made to investors every month.

The white paper also details the existing technology solutions that can help address many of the negative effects of the pandemic on the real estate and mortgage markets.

The white paper is available to download free of charge via this link.

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