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In a well-established mid-month trend, the active forbearance plans climbed up by 11,000 after declining for a fortnight.
According to Black Knight’s latest report data, the overall increase of 11,000 was because of rising in plans among portfolio/PLS loans by 12,000 and balanced by a 1,000 drop in GSE forbearance. Compared to last week the FHA/VA forbearance plan volumes held steady.
The McDash Flash forbearance tracker of Black Knight showed that as of August 17th 3.3% of borrowers, which is 1.75 million including the 1.9% of GSE mortgages, FHA/VA loans were 5.8%, and portfolio-held and privately securitized mortgages were 4% were still in pandemic-related forbearance.
Andy Walden, economist, and director of market research at Black Knight said that around the same time in July the plan volumes are now down 110,000, with the rate of improvement slowing slightly in recent weeks.
Since late May the plan exits reached their lowest week-over-week. Of the total plans reviewed 41% were plan exits, which was 36% at the same time in July.
In the coming weeks, Walden expects activity to pick up now that forbearances are almost ending.
Close to 200,000 plans are taken for review through the final two weeks of August, depending on current allowable forbearance term lengths roughly one-third of those are reaching their final expiration it will lead to a significant increase in the volumes of final expirations in September and October.
Reference Source: MPA
