Business & Investment

Slight increase in homeowners in COVID-19-related tolerance plans

Along Calculated risk of January 22, 2021 03:30: 00 PM

Note: Both the Black Knight and the MBA (Mortgage Bankers Association) publish weekly mortgage quotes.

This data is current as of January 19th.

From Black Knight: Active tolerance plans increase slightly as improvement continues to the plateau

The mid-month trend of active tolerance plans we have reported for some time will continue into 2021, with the population of homeowners in such plans 17,000 rise this week..

According to the latest weekly snapshots of McDash Flash’s daily mortgage performance data As of January 19, 2.74 million homeowners were actively tolerant.. The population has fluctuated between 2.71 million and 2.83 million since early November, when the country began seeing a surge in new coronavirus cases and the resulting shutdown.

Click the graph to see the enlarged image.

Removal rates have also slowed significantly following the six-month grace plan. This suggests that tolerant borrowers are more affected by the recession and are therefore less likely to leave such plans before the end of the full 12-month period allowed. ..

The total number of aggressive tolerance plans is far from the peak seen last summer, but the rate of improvement remains relatively slow. The number of new plans starting is low, and the number is stable on average for three weeks, down 30% from the same week in December. At the same time, planned deletions are still weak, recording the second lowest weekly deletions ever observed since we began monitoring the situation in April this week.

Emphasis added

Slight increase in homeowners in COVID-19-related tolerance plans Slight increase in homeowners in COVID-19-related tolerance plans

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