More Americans are missing their house payments according to a recent MReport. In May, another 723,000 homeowners became past due on their mortgages. This pushed the national delinquency rate to 8.5, which is the highest level in years. There are now roughly 4.3 million American homeowners who are past due on their mortgages or in active foreclosure. This is 2 million more than the end of March. Additionally, serious delinquencies have increased by more than 50% over the last two months. Black Knight McDash Flash Payment Tracker reported a higher share of payments have been made in June than in May, which indicates the rise in delinquencies may be leveling off. Data from the Black Knight McDash Flash Forbearance Tracker shows that the number of mortgages in active forbearance fell for the third week in a row. The number of active forbearance plans is down 57,000 from last week and 158,000 from May 22. In addition, the McDash Flash Payment Tracker, just 15% of those in forbearance had remitted their June payments as of June 15.
WHAT ELSE DID THE REPORT SAY?
According to the MReport, “At these levels, mortgage servicers need to advance a combined $3.4 billion a month to holders of government-backed mortgage securities on COVID-19-related forbearances. That’s on top of the $1.4 billion in T&I payments they must make on behalf of borrowers. Both foreclosure starts and sales (completions), halted by COVID-19 moratoriums, remain at record lows. The share of homeowners in active foreclosure has fallen to its lowest level on record since Black Knight began reporting the figure in January 2000”.
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