Sharp increases in Forbearance due to COVID-19

Forbes: Record Unemployment Drives Spike In Forbearance Requests

As the COVID-19 pandemic progresses, there are more and more Americans losing their jobs, resulting in an economic crisis:

“A new survey by the Mortgage Bankers Association reveals a sharp uptick in the number of mortgage loans in forbearance. The record number of Americans filing for unemployment benefits is fueling the surge. In April, the unemployment rate soared to 14.7%, the worst since the Great Depression.”

This is leading to a substantial increase of loans going into forbearance: 

“The total number of home loans now in forbearance increased from 7.54% of servicers’ portfolio volume in the prior week to 7.91% as of May 3 as homeowners continue to seek relief from mortgage payments amid the coronavirus crisis. According to MBA’s estimate, approximately 4 million homeowners are in forbearance plans.”