Another mid-month slowdown in exits brought on a 1% increase in active forbearance plan totals, according to Black Knight’s blog, Vision.
Approximately 8,000 homeowners entered new forbearance plans this week.
Loans held by portfolio and PSLs had the largest increase, with a 4.5% jump of 12,000 new plans. FHA/VA loans in forbearance fell by 4,000, down 1%. GSE loans stayed flat.
The total share of active plans is down by 125,000, or 12%, month-over-month. Black Knight noted that little is expected to change between now and the end of the year.
“The next opportunity for meaningful declines will occur in early January with nearly 200,000 plans scheduled for extension or removal through the end of the year, nearly half of which are expected to be reaching their final plan expirations,” the post reads.
The post did not suggest any relationship between this week’s increase and the recent surprise surge in plan starts. Starts recently rose 24%, jumping by nearly 8,000 the week before Thanksgiving alone.
A recent study found that higher rates of foreclosures and short sales among homeowners of color are a primary reason for the racial wealth gap, which the Biden administration has repeatedly promised to address.
The total number of mortgage holders in Covid-19 related forbearance is now 890,000, or 1.7% of all mortgages.
Here are some more highlights from the post:
- Share of VA and FHA loans in forbearance: 2.5% (-0.1%)
- Share of GSE loans: 1.1% (unchanged)
- Share of Portfolio-held and PSL: 2.2% (+0.1%)