Mortgage relief programs established during the coronavirus pandemic have helped 4.66 million people across the country. Last week we saw the number of borrowers participating in these programs fall for the second straight week.
Fannie Mae and Freddie Mac backed loans saw the largest decrease in forbearances, but decreases were seen across the board.
Although the numbers are decreasing, there are still 4.6 million borrowers in forbearance, so there is still a long road ahead.
“While borrowers can delay their payments, mortgage servicers still must advance those payments to bondholders for a maximum of four months.
At today’s levels, servicers of Fannie and Freddie loans will need to remit up to $8.8 billion in advances over that four-month period.
Borrowers have the option to make up their missed payments when they sell their homes or refinance their mortgages.”