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Forbearance Decline Largest in Six Months
Friday, April 9, 2021
Black
Knight reports that the number of loans in forbearance programs declined last
week for the sixth straight time and it was the largest drop in six months. As
of April 6, the number of loans in active plans was 2.312 million or 4.4
percent of all homeowners with mortgages. This is down by 228,000 from the
previous Tuesday, a 9 percent drop in a single week. A
company spokesperson said the decrease was not unexpected. It was driven
largely by those who entered the program shortly after it was authorized exiting
their plans at the 12-month mark. That would have been their final expiration
point prior to recent extensions. The
improvement was widespread. All investor classes saw significant improvement in
their numbers. The largest change was among those loans serviced for FHA and VA,
down 94,000. This was followed by
downturns of 69,000 and 65,000 in GSE (Fannie
Mae and Freddie Mac) and portfolio/private label security (PLS) plan
forbearances, respectively. At the end of the reporting period there were
753,000 GSE, 954,000 FHA/VA and 605,000 portfolio/PLS loans remaining in
programs.
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