Forbearances plan exits surged during the first week of December, according to Black Knight’s blog, Vision.
Approximately 112,000 homeowners exited forbearance plans this week, a decrease of 11%.
Loans held by portfolio and PSLs led the charge, seeing a drop of 49,000 (-15%). FHA/VA loans in forbearance fell by 12%, down 42,000. GSE loans saw a decrease of 21,000 or 7%.
The blog notes that after this initial tidal wave, there is a “modest opportunity” for continued improvements in the next few weeks. Of the 33,000 loans still under November review for extensions or removal, about half are expected to be final expirations.
However, this week also brought another onslaught of new plan starts, which jumped by nearly 8,000 the week before Thanksgiving.
Plan starts increased 24% over the past four weeks. They are primarily driven by FHA/VA loans, which saw a more than 40% spike, but GSE loans also jumped by 29%. Black Knight is “watching this trend closely.”
The total number of mortgage holders in Covid-19 related forbearance is now 7,882,000, or 1.7% of all mortgages.
Here are some more highlights from the post:
- Share of Fannie and Freddie loans in forbearance: 1.1%
- Share of VA and FHA loans in forbearance: 2.6%
- Share of GSE loans: 1.1%
- Share of Portfolio-held and PSL: 2.1%