More than 2.9 million U.S. homeowners are already in COVID-19 related forbearance plans according to Black Knight’s McDash Flash Data Set.
That’s about 5.5% of all mortgages.
This population represents $651 billion in unpaid principal and includes 4.9% of all GSE-backed loans and 7.6% of FHA/VA loans.
At the current level, mortgage servicers would be bound to advance $2.3 billion of principal and interest payments per month to holders of government-backed mortgage securities on COVID-19-related forbearances.
Another $1.1 billion per month in lost funds will be faced by those with portfolio-held or privately securitized mortgages, Black Knight says.
“In these times, it is essential to both our industry and for the benefit of the entire U.S. economy to have a clear understanding of the magnitude of the mortgage forbearance situation,” says Anthony Jabbour, CEO of Black Knight, in a statement. “Leveraging Black Knight’s extensive data, research and analytics capabilities, we are able to provide that clarity. Black Knight has the data and analytics necessary for lenders and servicers to benchmark their company’s activities against the industry and use this information to make informed decisions regarding next steps.”