This data is as of Monday, August 3rd.
The usual forbearance period is 3 months, and a large number of mortgage holders have had there forbearance period extended an additional 3 months.
From “Echo wave” of forbearance expirations
The latest data from the McDash Flash Forbearance Tracker shows that, improving upon last week’s decline, the number of active forbearance plans fell by 101,000 from the week prior, driven in part by the estimated 500,000 plans that were set to expire at the end of July entering the last week of the month.
More than two-thirds of loans that remain in active forbearance have had their plans extended. With the bulk of forbearance extensions being for an additional three months, an ‘echo wave’ of forbearance expirations has been generated.
For context, entering June, nearly 2.5 million plans were set to expire in that month. Given the typical 3-month extensions 2.2 million are now set to expire in September, meaning another wave of forbearance extensions and removals may very well be seen in late September/early October.
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As of August 3, approximately 4 million homeowners were in active forbearance, the lowest such share since the last week in April and representing 7.5% of all active mortgages, down from 7.7% the week prior. Together, they represent $852 billion in unpaid principal.Spikes in COVID-19 around much of the country and the expiration of expanded unemployment benefits at the end of July both represent significant uncertainty for the weeks ahead. Black Knight will continue to monitor the situation and provide updates via this blog. emphasis added
Click on graph for larger image.
CR Note: There will be another disaster relief package soon, but we might see an increase in forbearance activity in the coming weeks as we wait for additional relief.