24% of active forbearance plans set to end in March, as more than 600,000 homeowners face a 12-month expiration
– Almost 3.6 million 90-day defaults occurred in 2020 – the highest number since 2009 – with 2.1 million homeowners currently seriously behind on their mortgage payments
– At the current rate of improvement, when forbearance plans start to expire in March, there would still be around 1.5 million more serious delinquencies than at the start of the pandemic
– As of mid-January, over 2.7 million homeowners were still on active forbearance plans, with this rate of improvement slowing in recent months as well
– Based on the average improvement from June 2020 to January 2021, there could still be more than 2.5 million active plans at the end of March
– The more than 600,000 active forbearance plans that expire at the end of March represent a significant unknown in terms of the ability of affected borrowers to resume their mortgage payments at that time
– The share of borrowers withholding mortgage payments has fallen to just 12%, suggesting a population that may well face a protracted challenge to get their mortgages up to date
JACKSONVILLE, Florida, February 1, 2021 / PRNewswire / – Today, the Data & Analytics division of Black Knight, Inc. (NYSE: BKI) released its latest Mortgage Monitor report, based on industry-leading mortgage, real estate and the public records of the company. As the final 12-month expiration point for many forbearance plans rapidly approaches, this month’s report examines how the slowdown in improvement in recent months may present new challenges for recovery. seriously delinquent owners. According to the president of Black Knight Data & Analytics Ben Graboske, the end of March 2021 promises to be an inflection point for the industry.
“For the roughly 6.7 million Americans who have benefited from COVID-19 mortgage forbearance at some point since the start of the pandemic, the programs have represented a vital lifeline,” Graboske said. “The vast majority of plans have a 12-month cap on withholding payments, however. And the various moratoria that have held foreclosure actions at bay over the past 10 months can lull us into a false sense of security. as to the scope of the post – forbearance problem we will face at the end of March. Last year, the largest number of homeowners – nearly 3.6 million – became 90 days or more past due since 2009, and at the end of December, 2.1 million remained.
“When nearly a quarter of all abstention plans end on March, 31st, at the current rate of improvement, there are still around 1.5 million more serious delinquencies than before the pandemic. With this rate of improvement slowing in recent weeks, current trends suggest that more than 2.5 million homeowners are still in abstention at this point. While at the start of the pandemic, about half of homeowners who were forborne continued to make their monthly mortgage payments, that number has steadily declined. Today, it’s around 12%, suggesting that people who take their full forbearance period may well experience prolonged financial distress and face protracted challenges when they resume performing. payments. “
Unless the federal government takes further action, more than 600,000 severely delinquent borrowers will reach the end of their forbearance periods at the end of March. This clearly shows the industry-wide need for post-forbearance stunts to determine borrower needs and preparedness while foreclosure moratoria are still in place. By effectively targeting low-risk borrowers as they exit forbearance, attention can then shift to those who need it most. Robust portfolio oversight, borrower awareness, loss mitigation and regulatory compliance will become increasingly important as the year progresses and the industry adapts to the scale and size. extent of the post-abstention problem. Much more detail can be found in Black Knight’s december 2020 Mortgage monitoring report.
About the Mortgage Monitor
Black Knight’s Data & Analytics division manages the leading national repository of residential mortgage-level loan-level data and performance information covering the majority of the global market, including tens of millions of loans across the spectrum. credit products and over 160 million historical records. . Black Knight HPI’s combined home price and real estate data overview and Collateral Analytics provide one of the most comprehensive, accurate and timely home price metrics available, covering 95% of US residential properties up to level. postal code. In addition, the company maintains one of the strongest public property records databases available, covering 99.9% of the U.S. population and households in more than 3,100 counties.
Black Knight’s research experts carefully analyze this data to produce a summary supplemented with dozens of tables and charts that reflect trends and point observations for the Monthly Mortgage Watch Report. To view the full report, visit: https://www.blackknightinc.com/data-reports/
About Black Knight
Black Knight, Inc. (NYSE: BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and services and real estate industries, as well as in capital markets and secondary. Businesses leverage our robust, integrated solutions throughout the homeownership lifecycle to help retain existing customers, gain new customers, mitigate risk and operate more efficiently.
Our customers rely on our proven, comprehensive and scalable products and our unwavering commitment to providing superior customer support to achieve their strategic goals and better serve their customers. For more information on Black Knight, please visit www.blackknightinc.com/.
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SOURCE Black Knight, Inc.