The number of loans in active forbearance fell by 11% since last Tuesday, the largest weekly decline in twelve months, according to Black Knight’s blog, Vision. That leaves 1.39 million homeowners in forbearances due to Covid-19.
The total number of mortgages in forbearances is down 177,000 this week. The largest drop was in FHA/VA loans, which fell by 84,000 plans. GSE loans in forbearance dropped by 11% and bank portfolios/PLS dropped by 8%.
Black Knight has been expecting a huge decline in forbearance plans, and predicted last week that this week would be a killer, saying “the largest declines in forbearance volumes typically come during the first week of the month, as plans which expired in the prior month are deactivated in servicing systems of records.”
Those huge declines have finally arrived, and Black Knight expects the momentum to keep growing.
“There are still more than 180,000 plans with September month-end review dates. Keep in mind that this data only covers the last business day in that month and the first three in October. Additional exits are likely in coming weeks as well as servicers continue to work through the large volumes of expirations,” the report reads.
Here are some more highlights from the post:
- Share of Fannie and Freddie loans in forbearance: 1.4%
- Share of VA and FHA loans in forbearance: 4.3%
- Share of GSE loans: 1.4%
- Share of Portfolio-held and PSL: 3.6%