RIF - Will Mortgage Forbearance Impact Other Markets?

Mortgage service providers, under a new rule, proposed last week, would be required to delay foreclosures on primary residences until after 2021. This proposed rule would affect all servicing lenders, not just FNMA, FHLB, FHA, and VA mortgages that previously had fallen under the original forbearance mandates in the CARES Act. Recent figures by the Consumer Protection Financial Bureau (CFPB) show nearly 3 million homeowners are presently behind on their mortgage payments. This is an improvement from the high last June when, according to data from the Mortgage Bankers Association (MBA), there were 4.3 million households in arrears or 8.53% of single-family home mortgages. This month (April 2021), the MBA reported an estimated 2.5 million homeowners, or 4.9%, are in forbearance. This is a very slight reduction from the 4.96% in forbearance recorded the month before.Read More >>