(CNBC) -- As unemployment surges and more Americans struggle to make ends meet, more homeowners are applying for the government’s mortgage forbearance program under the recently-passed coronavirus relief plan.
The CARES Act allows borrowers with loans backed by Fannie Mae, Freddie Mac and Ginnie Mae to miss up to a year’s worth of monthly payments, which they are then required to remit at a later date or in a payment plan over time.
Requests for forbearance jumped 78% for the week ending April 5th compared with the previous week, according to the Mortgage Bankers Association. The number of borrowers now in forbearance topped 2 million; the share of total loans in servicing portfolios in forbearance rose from 2.73% to 3.74% of total bank and non-bank servicing portfolios.
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