Data Confirms Less Delinquencies and Foreclosures Than Anticipated

Forbearance requests from homeowners have leveled off in recent weeks showing that there are likely to be less delinquencies and foreclosures than originally thought; 4.2 million were on forbearance plans as of May 17h, equating to about 8.36% of all loans outstanding; this number stood at less than 1% in early March and was 8% on May 3rd; this is welcome news to mortgage services s even as job losses have continued to increase; still it is hard to model just what might happen going forward especially as some businesses will not rehire staff; some estimates show delinquency rates peaking at 12% to 15% nationwide with foreclosure rates hitting 9% or 10%; there will also be a concentration of foreclosures and delinquencies in areas most impacted by COVID-19. American Banker

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