Black
Knight reports that the number of loans in forbearance programs declined last
week for the sixth straight time and it was the largest drop in six months. As
of April 6, the number of loans in active plans was 2.312 million or 4.4
percent of all homeowners with mortgages. This is down by 228,000 from the
previous Tuesday, a 9 percent drop in a single week.

A
company spokesperson said the decrease was not unexpected. It was driven
largely by those who entered the program shortly after it was authorized exiting
their plans at the 12-month mark. That would have been their final expiration
point prior to recent extensions.

The
improvement was widespread. All investor classes saw significant improvement in
their numbers. The largest change was among those loans serviced for FHA and VA,
down 94,000.  This was followed by
downturns of  69,000 and 65,000 in GSE (Fannie
Mae and Freddie Mac) and portfolio/private label security (PLS) plan
forbearances, respectively. At the end of the reporting period there were
753,000 GSE, 954,000 FHA/VA and 605,000 portfolio/PLS loans remaining in
programs.

 

 

 

An
estimated 280K homeowners exited forbearance this week, and there have been an
estimated 158,000 starts or reentries over the last four weeks. The exiting
homeowners represent more than half of all loans being reviewed for extension
and removal. For context, as recently as last week, roughly 8 out of every 10
plans reviewed for extension/removal activity resulted in the extension of
forbearance. The number of starts and restarts were down 18 percent from the
preceding four-week period.

In
total, this puts the number of active plans down by 323,000 over the last month
a 12.3% reduction and the strongest rate of improvement since early November.
This is also a 2.45 million loan decline (-51 percent) from the spring 2020
peak.

Black
Knight notes there are another half-million plans with April month-end expirations,
so  the possibility remains for further
improvement through this month and into May.

By Jann Swanson , dated 2021-04-09 10:45:59

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Courtesy of Mortgage News Daily

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