Black Knight: Number of Mortgages in Forbearance Declines
by Calculated Risk on 11/05/2021 04:10:00 PM
Note: Both Black Knight and the MBA (Mortgage Bankers Association) are putting out weekly estimates of mortgages in forbearance.
This data is as of November 2nd.
From Andy Walden at Black Knight: October Forbearance Exits Pick Up Pace in Final Week of Month
According to our McDash Flash daily mortgage performance dataset, the number of loans in active forbearance fell 85,000 (-6.9%). The week’s strongest declines were seen in FHA/VA plans, which marked a 42,000 (-9%) plan reduction. Strong improvement was also observed among GSE plans, which declined by 22,000 (-6%), as well as those held in bank portfolios or private label securities, (-21,000, -5.3%).
As of Nov. 2, 1.14 million mortgage holders remain in COVID-19 related forbearance plans, representing 2.1% of all active mortgages, including 1.2% of GSE, 3.5% FHA/VA and 2.8% of portfolio/PLS loans.
Click on graph for larger image.
Active plans are now down 332,000 (-23%) from the same time last month, as the first wave of forbearance entrants continue to reach their final expirations. Further improvement is likely next week as well, given the 129,000 reviews still scheduled for October, 75% of which are expected to be final expirations.
Finally, forbearance plan starts decreased 8% this week, with plan restart activity falling to its lowest level since early October.