Forbearance plans rose for a second week, according to Black Knight’s blog, Vision.
Overall, forbearances rose by 17,400 (2.4%). Forborne loans held by portfolios and PSLs drove the week with an increase of 7,800 (3.3%). FHA/VA loans saw an increase of 5,000 (3.3%), while GSE plans rose by 4,500 (2%).
Black Knight said this week’s numbers “extended their upward trend this week following a typical pattern of increased mid-month restarts.”
New plan starts held steady this week at 11,200, though restarts increased by 6,000 to a total of 31,700.
Plan volume is down 47,000 (-6%) month-over-month.
The increase this week comes on the heels of a major drop in plans two weeks ago, so rates remain historically low.
An analysis by the Federal Reserve Bank of Philadelphia found that of borrowers still in forbearance, around half are not in a loss mitigation plan with their servicers. Of the other half, nearly three-quarters have not resumed payments.
“Borrowers need to reach out to their servicers to start the process that CFPB rules require of mortgage servicers. With the exceptionally strong housing market, many distressed borrowers have equity in their homes and can take advantage of the new loan terms if they wish to stay in their homes,” said Larry Cordell, Senior Vice President of the bank’s RADAR group.
Some 97,000 plans are up for review in April, the next time Black Knight expects to see significant improvement. One-third should expire.
The total number of mortgage holders in Covid-19 related forbearance is now 743,000, or 1.4% of all mortgages.
- Share of FHA/VA loans in forbearance: 2.2% (unchanged)
- Share of GSE loans: 0.8% (unchanged)
- Share of Portfolio-held and PSL: 1.9% (+0.1%)