Here are three key trends from our analysis of homeowner forbearance exit trends during the pandemic: Borrowers are exiting forbearance in an orderly fashion. The total number of forbearances peaked in mid-June and consistently declined week-over-week until late November (see Figure 1 below). Figure 1: MBA data from the week of November 22 show a…
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Six months after forbearances skyrocketed in March, millions of homeowners are still struggling. Naturally, COVID-related homeowner strain has drawn comparisons to the 2008 economic crisis, but there are key differences between then and now. Here are three reasons why today’s housing economy may play out more positively than 2008. 1. Risky Behavior (Not a Pandemic)…
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In recent weeks, we’ve been tracking how many homeowners are extending their mortgage forbearance period from 90 days to the full 180 days provided for by the CARES Act. Today, we’ll address the top three reasons homeowners have been exiting forbearance, then tie it back to extensions. The top three reasons in the chart below…
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The MBA’s latest weekly forbearance survey showed that while total mortgage forbearances dropped from 8.55% to 8.18% in the past month, forbearances that received extensions spiked from 6.52% to 43.03% in the same period. Let’s take a look at what the rise in forbearance extensions means and what mortgage servicers can expect in the weeks…
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