There was a sharp decline in the number of loans in
forbearance during the week ended May 4. Black Knight says this has come to be the norm
during the early weeks of each month. Overall forbearance volumes dropped by
105,000, a 4.5 percent improvement. The company, in its weekly report, said
there are another 73,000 active plans with terms that expired at the end of
April which may drive more exits in early May.
There were thousands of departures of each loan type.
GSE forbearance volumes were down 39,000 or 5.3 percent, 44,000 FHA and VA
loans left the program (4.7 percent), and the number of forborne loans serviced
for bank portfolios and private label securities (PLS) declined by 22,000 or
At the end of the reporting period, 2.22 million loans
remain in active plans. Of those, 697,000 are serviced for the GSEs, 2.5
percent of those outstanding loans, and 900,000 are FHA or VA loans (7.4
percent). The remaining 627,000 portfolio and PLS loans represent 4.8 percent of those
Black Knight estimates another 350,000 loans are due
for servicer reviews to
determine extensions or removals this month, and 900,000 will be due in June.
The latter will be the final quarterly review before early forbearance entrants
begin to reach their 18-month plan expirations later this year.