Forbearance Exits Remain High

Of single-family homeowners who entered Covid-19 related forbearance, 89% have now exited their plans. Active forbearance plans dropped by 43,000 (-8%) in the first week of January, according to Black Knight’s blog, Vision. The number of loans in forbearance fell across all categories, led by a 22,000 (-8%) drop in forborne loans held by portfolios and PSLs. Forbearances on FHA/VA loans fell by 17,000 (-16%) and GSE loans fell by 4,000 (-1.6%). The number of active plans is down 100,000 (-12%) from last month. An additional 155,000 plans are up for extension or removal in January. However, less than a third are expected to expire, meaning exit volumes will lessen moving forward. New plan starts rose again, reaching their highest…

Forbearances Drop, Though Plan Starts Continue Climbing

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…