The federal government and most lenders in the U.S. implemented early last year mortgage forbearance plans for homeowners who may have been impacted by the coronavirus pandemic. Most of those plans have now ended or are about to end, potentially leaving hundreds of thousands of homeowners in a delinquent status if they don’t immediately resume their monthly payments.
“We’re in the midst of the largest transition out of forbearance we’re likely to see, with three-quarters of a million homeowners leaving plans over the past 60 days,” said Andy Walden, vice president of market research for Black Knight.
For the most parts, banks view the forbearance plans as largely successful. More than half of those who deferred their payments are now current on their mortgages. But three percent of borrowers, approximately 264,000 are now delinquent or in active foreclosure.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (877) 700-0942 and your questions may be featured in an upcoming article.
