For the moment at least, the number of
loans in forbearance are heading downhill and picking up speed. Black Knight
says the number of active plans declined by 135,000 over the past month (-5
percent), 19,000 (-0.7 percent) occurred in the last week alone. As of March
23, there were 2.57 million loans remaining in forbearance, 4.9 percent of all
active mortgages.

The company says this month’s rate of decline
is the strongest since late November. Servicers have worked through 1.2 million
plans that entered the month with expirations scheduled at the end of the
month. With eight days left in the month when Black Knight compiled this week’s
data, there were still 46,000 loans to process, providing the potential for
additional improvement in the next few weeks.

The number of loans serviced for Fannie
Mae and Freddie Mac (the GSEs) dropped by 21,000 last week and 10,000 fewer
FHA/VA loans remained in plans. The number of forborne loans serviced for bank
portfolios or private label security (PLS) investors increased by 12,000 to
676,000 or 13 percent of those loans. At the end of the reporting period there
were 837,000 GSE loans and 1.06 million FHA/VA loans remaining in forbearance. Those
numbers represent 3.0 percent and 8.8 percent of those guarantors’ portfolios,
respectively.   

While the number of exits from plans
was substantial, Black Knight points out that this was primarily a factor of
the sheer number scheduled for review. Seventy-five percent of plans expiring
in recent weeks have been extended.
The week’s report concludes, “Early
extension activity suggests servicers continue to approach forbearance plans in
three-month increments, with the bulk of would-be March expirations being extended
out through June.,”

By Jann Swanson , dated 2021-03-26 12:15:23

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Courtesy of Mortgage News Daily

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