While the number of mortgages in forbearance continues
to fall, Black Knight said there was a 33,000 reduction over the last week and
172,000 homeowners have exited the various programs over the last month, 2.54
million borrowers remain in forbearance. This is 4.8 percent of all those with
a mortgage.
Now the Consumer
Financial Protection Bureau (CFPB) is alerting mortgage servicers to prepare
for what may be a wave of avoidable foreclosures as forbearances come to an end
in the fall and the current foreclosure moratoriums expire. While the
GSEs (Fannie Mae and Freddie Mac) and Ginnie Mae, which is responsible for VA
and FHA loans, have provided several options for borrowers to pay back any past
due mortgage payments that have accrued during the pandemic, many homeowners
will need help from their servicers. CFPB warns them that they need to dedicate
sufficient resources and staff starting now to ensure they are prepared for any
surge.

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