MReport June 2020

TheMReport — News and strategies for the evolving mortgage marketplace.

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M REPORT | 49 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Homeowners Struggling to Make Mortgage Payments Thirty-one percent of Americans made either a partial payment or no payment in May. A partment List found that 31% of Americans made either a partial house payment or no payment at all in May—an increase from the prior month. Twenty-two percent of home- owners made no housing pay- ments in May. Also, those who work remotely have had an easier time paying for housing, with a May delinquency rate 10 percent- age points lower than those going into the office. The report found that 69% of renters and homeowners paid a full housing payment in May, which is considerably lower from April's 76%. Just 12% of renters and homeowners made no payment in April, which is nearly half of the 22% in May. Those who struggled to make payments in April also struggled to make payments in May. The report found that of those who made a full payment in April, 81% were able to make full payments in May. However, 60% of people who struggled in April did not make a payment in May, while 60% made just partial payments. Lower-income households are struggling the most, as 71% of homeowners making under $75,000 per year did not pay their housing bill. Despite recent numbers, those with a mortgage are showing im- proved confidence if they needed to shelter-in-place through June. The survey found in April that 6% of homeowners would not be able to pay their mortgage. That saw a slight decline to 4% in May. As of April 30, more than 3.8 million homeowners are in for- bearance plans, representing 7.3% of all active mortgages, accord- ing to the latest data from Black Knight. Together, they account for $841 billion in unpaid principal and include 6.1% of all GSE-backed loans and 10.5% of all FHA/VA loans. This is an increase from Black Knights April 24 data, when more than 3.4 million homeowners, or 6.4% of all mortgages, have entered into COVID-19 mortgage forbear- ance plans. According to Black Knight CEO Anthony Jabbour, the recent Federal Housing Finance Agency (FHFA) announcement of a four-month limit on ad- vance obligations for servicers of mortgages backed by Fannie Mae and Freddie Mac provides the industry with some much-needed clarity.

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