As the economic shutdown drags on and job losses mount, more borrowers are opting to delay their monthly mortgage payments through mortgage forbearance plans.
The majority are doing it through a program designed to provide relief to holders of government-backed home loans, part of the coronavirus CARES Act relief package.
These forbearances represent $754 billion in unpaid principal. They include 5.6% of all loans backed by government-sponsored enterprises Fannie Mae and Freddie Mac and 8.9% of all FHA/VA loans. At the current level, mortgage servicers are required to advance $2.8 billion of principal and interest payments per month to mortgage bondholders of government-backed loans.
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