Black Knight’s June 2021 Mortgage Monitor

As of July 20, of the 7.3 million homeowners who have been in COVID-19-related forbearance at some point since the onset of the pandemic, approximately 1.86 million remain in active plans
Recently, FHFA, FHA, VA and USDA have provided clarifying details on varying maximum allowable forbearance periods depending on when a plan was initially requested, with each agency’s matrix differing from the others
As a result, forbearance plans started as much as seven months apart would now expire simultaneously, assuming borrowers stayed in for the maximum allowable term
This would concentrate expiration activity later this year, particularly among FHA borrowers who may face heightened challenges in returning to making mortgage payments post-forbearance
Under the current expiration matrices, 65% of all plans – including nearly 80% of all FHA and VA loans now in forbearance – would expire through the remainder of 2021, approximately 1.2 million in total
With the bulk of expirations now coming earlier than anticipated, servicers face mounting operational challenges related to such a large volume of complex, post-forbearance loss mitigation efforts

4closureFraud.org