Approximately 4.7 Million Mortgages in Forbearance

Approximately 4.7 million mortgages are in some stage of forbearance at this point. This represents approximately 8.8% of all home loans. The number of borrowers with secured agreements to delay payments rose from 4.5 million to 4.7 this week. This translates into 27,000 new forbearance agreements a day.

This pace of loan forbearances has fallen by 85% from April figures.

The single biggest reason for this surge in mortgage forbearances is attributed directly to the COVID-19 pandemic, which has forced 36.5 million Americans into furloughs or out right job loss.

The loans represented in forbearance equal approximately $1 trillion in unpaid principal.

It is projected that by the end of June, nearly one in 8 mortgages will be in some form of forbearance.

Estimates for the worst-case scenarios project 4.9 million loans coming into forbearance by the end of May. This represents approximately 9.2% of active mortgages. By the end of June that number could rise to 5 million.

The very worst case scenario is our projecting either 5.4 million loans in forbearance, representing 10% of all home mortgages, or 6.3 million mortgages or 11.8% by the end of June.