PFSI - Huge number of mortgage forbearance plans may expire at same time: Black Knight

Recent changes at FHA, VA, and USDA that vary maximum allowable mortgage forbearance periods could result in an avalanche of forbearance expirations for mortgage servicers to handle in late 2021 and early 2022, according to Black Knight's Mortgage Monitor report. Assuming that borrowers stay in for the maximum allowable term, forbearance plans started out by as much as seven months apart would now expire at the same time, said Black Knight Data & Analytics President Ben Graboske. "The current structure results in the stacking of expiration upfront in the fall and noticeably increases the volume of expected forbearance expirations in late 2021 and early 2022," he said. 65% of active forbearance plans, or some 1.2M U.S. homeowners are set to expire through 2021, including ~80% of all FHA and VA loans in forbearance, Black Knight reports. With potentially ~750K active plans to expire in September and October, mortgage servicers could

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Huge number of mortgage forbearance plans may expire at same time: Black Knight