The number of homeowners seeking forbearance plans is still rising nationwide, but the rate of increase started slowing in mid-May, according to recently released reports by the Mortgage Bankers Association.
Forbearance plans are used by homeowners to delay mortgage payments for a set period if they are having trouble affording them. They have become a major piece of the nation’s response to the economic tumult caused by coronavirus, as Congress’ pandemic assistance package laid out requirements for forbearance plans for federally backed mortgages. Major banks also have rolled out programs specifically for people harmed financially by COVID-19 business closures.
According to a report released this week, just over 4.2 million homeowners are now in forbearance plans, representing 8.46 percent of mortgages.
“MBA’s survey continues to indicate that fewer homeowners are seeking forbearance as more states across the country reopen their economies and prospects begin to improve,” said Mike Fratantoni, the association’s senior vice president and chief economist.
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https://www.tampabay.com/news/real-estate/2020/06/04/after-historic-mortgage-delinquency-in-april-forbearance-requests-start-to-slow/