According to latest data from Black Knight’s McDash Flash Forbearance Tracker, the number of mortgages in active forbearance remained flat over the past week, with a 15,000 reduction among GSE mortgages offset by a 5,000 rise in FHA forbearances and a 10,000 increase among portfolio/PLS-held loans.
As of August 18, 3.9 million homeowners remain in active forbearance, representing 7.4% of all active mortgages, unchanged from last week. Together, they represent $833 billion in unpaid principal.
As we’ve discussed previously, there are a number of factors that continue to represent significant uncertainty as we move forward, including the ongoing COVID-19 pandemic and the expiration of expanded unemployment benefits last month.
The question remains.. what happens after the forbearance is over? Maybe a loan modification is the answer.