Black Knight

As the growth rate in forbearance requests downshifts, a vast stockpile of loans await modifications.

But in the worst-case scenario, the number of forbearances could grow by 3 percentage points through the end of June.

But Black Knight and Arch Capital's mortgage insurance business aren't as affected, at least so far.

With unemployment mounting, new mortgage forbearance requests could sharply increase in early May when payments are due.

About 7.3% of U.S. mortgages entered forbearance plans in April, providing temporary relief to more than 3.8 million borrowers who have lost income during the coronavirus pandemic.

As lenders scale up on their remote capabilities in response to the pandemic, the software companies that service them see exponential growth.

Due to COVID-19's economic impact, the number of mortgaged properties in default or foreclosure rose in March for the first time since the turn of the century, according to Black Knight.

Researchers predict that the rate will rise in step with unemployment rate projections.

Servicers' obligations to advance or temporarily absorb unpaid funds could range from $3 billion to $13 billion per month, according to Black Knight.

While the mortgage market began the year healthy, lenders and borrowers need to prepare for the impacts of the coming coronavirus recession.