Monday, October 2, 2023 | The Latest Buzz for the Appraisal Industry

Black Knight Examines Scope of Underwater Loan Rescue

By Jann Swanson

Posted To: MND NewsWire

In its current edition of its monthly Mortgage Monitor report Black Knight Financial services takes a new look at data on underwater delinquent borrowers. The company said this was prompted by a recent Senate Banking Committee hearing that looked at the possibility of writing down mortgage principal balances to assist those borrowers. Trey Barnes, Black Knights senior vice president of Loan Data Products, estimated some 4 million borrowers are underwater, that is owe more on their mortgages than the market value of their homes, and have nearly $800 billion in outstanding balances. Even in an environment of rising prices, these negative equity borrowers are ten times more likely to fall into delinquency than those with positive equity. There is a 40 percent aggregate delinquency rate among borrowers…(read more)

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