Forbearance Volume Continues, but at a Slower Pace

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Posted To: MND NewsWire

In its May 5 report on the number of COVID-19 forbearance plans in effect, Black Knight said the rate of new plans had slowed , but speculated they could pick up again as the May mortgage payments came due. As of May 12, that had not happened. The company reports that the number of plans had increased from a revised 4.5 million to 4.7 million. That increase, a net of just under 26,000 new plans per day, is a substantial reduction of more than 85 percent of the daily rate in early April. However, as most mortgage documents allow a 15-day grace period before a mortgage is marked as past due and a late fee assessed, borrowers still had a few days remaining at the end of the reporting period to request forbearance before any penalty kicked in. Black Knight used a momentum-based approach based on…(read more)

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