Shelter Six:  Mortgage Forbearance Figures Plummet

The number of mortgages in active forbearance saw the largest one-week decline since the pandemic began, according to Black Knight.

As of October 6, forbearance figures fell 18% to only 5.6% of all active mortgages, bringing the total number of plans below 3M for the first time since mid-April.

The catalyst for the massive drop in forbearance figures is the result of the initial people entering forbearance hitting the end of their initial 6-month term.

A key index measuring the strength of the services industry shot up much more than expected in September, the fourth straight month of solid recovery.

According to a monthly Fannie Mae survey, 83% are not concerned about losing their job, and 56% think it is a good time to sell a home (up from 48% the previous month).

Temporary mortgage underwriting flexibilities have been extended for loans with application dates prior to Oct 31 for Conforming, FHA, and VA, and to Nov 30 for USDA.

Rate Update

Rapidly shifting headlines about government stimulus caused interest rate volatility last week, but rates ended the week with little net change and near record lows.

This Week

The Consumer Price Index will come out on Tuesday while Retail Sales will be released on Friday.

October 12, 2020 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

Leave a Comment