Friday, April 24, 2020

The Pain Spreads

The surface news is not surprising, but underneath?  It's ugly.

...Just over 3.4 million borrowers, representing 6.4% of all mortgages outstanding, are now in forbearance plans. That’s an increase of 477,000 loans in just one week, or a nearly 9% jump, according to Black Knight, a mortgage data and analytics firm, which is running weekly tallies.  ...

That's the "not surprising" part.  Of course, that 3.4 million number will get a LOT larger in the next 60 days or so, so stay tuned.

Here's the part that's ugly:

...the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, announced the servicers would be bound to make these payments for 4 months. Fannie Mae usually requires payments be made for up to a year. Regardless, servicers of GSE-backed loans could still face more than $7 billion in advances, given the number of loans in forbearance thus far....
That's your friendly local mortgage broker, folks.  THEY have to pop 4 months of your payments even if YOU do not.

Think that's going to produce more unemployment?  If you don't, how stupid ARE you??

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