Black Knight: 24% of Active Forbearance Plans Scheduled to End in March, When More than 600,000 Homeowners Face 12-Month Expirations
Black Knight, Inc. (NYSE:BKI) released its latest Mortgage Monitor Report, highlighting the challenges ahead as many mortgage forbearance plans near expiration. As March 31 approaches, over 600,000 homeowners will face the end of their forbearance, risking delinquency. Currently, about 1.5 million homeowners are predicted to remain seriously delinquent post-expiration. The report indicates that only 12% of those in forbearance continue making payments, revealing growing financial distress among borrowers. The industry must prepare for the looming post-forbearance crisis, which could affect housing and mortgage markets significantly.
- Black Knight maintains a robust data repository on mortgage trends, enabling informed decision-making.
- The Mortgage Monitor Report provides critical insights into homeowner distress and potential market impacts.
- Over 600,000 borrowers will reach the end of their forbearance periods by March 31, risking serious delinquency.
- Only 12% of homeowners in forbearance are still making payments, indicating increasing financial hardship.
JACKSONVILLE, Fla., Feb. 1, 2021 /PRNewswire/ -- Today, the Data & Analytics division of Black Knight, Inc. (NYSE:BKI) released its latest Mortgage Monitor Report, based upon the company's industry-leading mortgage, real estate and public records datasets. As the final, 12-month expiration point for many forbearance plans quickly approaches, this month's report looks at how the slowdown in improvement in recent months may present new challenges to recovery for seriously delinquent homeowners. According to Black Knight Data & Analytics President Ben Graboske, the end of March 2021 is shaping up to be an inflection point for the industry.
"For the roughly 6.7 million Americans who have been in COVID-19 related mortgage forbearance at some point since the onset of the pandemic, the programs have represented an essential lifeline," said Graboske. "The vast majority of plans have a 12-month cap on payment forbearance, though. And the various moratoriums which have kept foreclosure actions at bay over the past 10 months may be lulling us into a false sense of security about the scope of the post-forbearance problem we will need to confront come the end of March. Last year saw the largest number of homeowners – nearly 3.6 million – become 90 or more days past due since 2009, and as of the end of December, 2.1 million remained so.
"When nearly a quarter of all forbearance plans come to an end on March 31, at the current rate of improvement there would still be approximately 1.5 million more such serious delinquencies than before the pandemic. With that rate of improvement slowing in recent weeks, current trends suggest more than 2.5 million homeowners would still in forbearance at that point. While early in the pandemic roughly half of homeowners in forbearance continued to make their monthly mortgage payments, that number has steadily declined. Today, it's about
Barring further action by the federal government, more than 600,000 seriously delinquent borrowers will reach the end of their allotted forbearance periods at the end of March. This clearly shows the industry-wide need for post-forbearance waterfalls to determine borrower need and readiness while foreclosure moratoriums are still in place. By efficiently addressing lower-risk borrowers as they exit forbearance, focus can then shift to those more in need. Robust portfolio monitoring, borrower outreach, loss mitigation and regulatory compliance will only become more important as the year progresses and the industry comes to terms with the size and scope of the post-forbearance problem. Much more detail can be found in Black Knight's December 2020 Mortgage Monitor Report.
About the Mortgage Monitor
The Data & Analytics division of Black Knight manages the nation's leading repository of loan-level residential mortgage data and performance information covering the majority of the overall market, including tens of millions of loans across the spectrum of credit products and more than 160 million historical records. The combined insight of the Black Knight HPI and Collateral Analytics' home price and real estate data provides one of the most complete, accurate and timely measures of home prices available, covering
Black Knight's research experts carefully analyze this data to produce a summary supplemented by dozens of charts and graphs that reflect trend and point-in-time observations for the monthly Mortgage Monitor Report. To review the full report, visit: https://www.blackknightinc.com/data-reports/
About Black Knight
Black Knight, Inc. (NYSE:BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage our robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively.
Our clients rely on our proven, comprehensive, scalable products and our unwavering commitment to delivering superior client support to achieve their strategic goals and better serving their customers. For more information on Black Knight, please visit www.blackknightinc.com/.
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SOURCE Black Knight, Inc.
FAQ
What is the significance of the March 31 deadline for forbearance plans according to Black Knight (BKI)?
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