Forbearance plans dropped to a post-pandemic low this week, falling by 49,800 (-6.5%), according to Black Knight’s blog, Vision.
Forborne loans held by portfolios and PSLs drove the week with a decline of 20,300 (-8.1%), while FHA/VA loans in forbearance fell by 15,300 (-5.4%). GSE plans fell by 14,300 (-6.1%).
Plan volumes are down 42,700 (-5.6%) month-over-month.
Some 154,000 plans are up for review in early April, the next time Black Knight expects to see significant improvement. One-third should expire.
Overall foreclosure rates were up 11% month-over-month in February and 129% YOY as they return to pre-pandemic levels.
Rick Sharga, executive vice president at RealtyTrac, an ATTOM company, said foreclosure activity this year will mimic February’s growth.
“This isn’t an indication of economic turmoil, or of weakness in the housing market; it’s simply the gradual return to normal levels of foreclosure activity after two years of artificially low numbers due to government and industry efforts to protect financially-impacted homeowners from defaulting,” he said.
The total number of mortgage holders in Covid-19 related forbearance is now 718,000, or 1.4% of all mortgages. More than 90% of single-family homeowners who entered Covid-related forbearance have now exited their plans.
- Share of FHA/VA loans in forbearance: 2.2% (-0.1%)
- Share of GSE loans: 0.8% (unchanged)
- Share of Portfolio-held and PSL: 1.8% (-1%)