Number of Homeowners in COVID-19-Related Forbearance Plans Decreased

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by Calculated Risk on 6/11/2021 08:47:00 AM

Note: Both Black Knight and the MBA (Mortgage Bankers Association) are putting out weekly estimates of mortgages in forbearance.

This data is as of June 8th.

From Andy Walden at Black Knight: Share of Borrowers in Forbearance Falls Below 4%, Lowest Since Onset of Pandemic

Forbearance volumes fell by 61,000 (-2.9%) from last week to this week, continuing the trend of early month declines in forbearance volumes. Declines were seen across all investor classes, with portfolio/PLS loans seeing the largest improvement (-33K), while FHA/VA (-19K) and GSE (-9k) forbearances also saw meaningful declines.

Plan starts did rise this week, following the Memorial Day-shortened week, but remain relatively low, considering. For the second week in a row, more than 100,000 homeowners left their forbearance plans, with roughly one-third of loan reviews for extension or removal resulting in removals.

Some 530,000 plans are still scheduled for quarterly reviews for extension/removal over the next three weeks, which could lead to additional plan exits as we near the July 4 holiday.

Click on graph for larger image.

Fewer than 4% of all mortgage-holders are now in forbearance, the first time since the onset of the pandemic this number has fallen so low.

As of June 8, 2.06 million (3.9% of) homeowners remain in COVID-19-related forbearance plans, including 2.3% of GSE, 6.9% of FHA/VA and 4.4% of portfolio/PLS loans.
emphasis added

source

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