The forbearance plan rolls expanded slightly over the
past week, reversing two weeks of falling numbers. Black Knight said the total
of loans in approved plans, which had declined by 273,000 over the previous two
weeks, rose by 30,000. This brings the number of forborne loans to 2.77 million
or 5.2 percent of the country’s 53 million active mortgages. Even with this
uptick, the situation is much improved from the peak of 4.76 million loans in
late May of this year and the number is down by 212,000 or 7 percent just from
the same time in October.

The greatest increase over the week was in loans
serviced for FHA and the VA, up by 15,000 loans. Loans serviced for portfolio
lenders or private label securities (PLS) were close behind with an increase of
14,000 plans while the GSEs Fannie Mae and Freddie Mac added 1,000 forborne
loans to their totals.

Black Knight said, “We’re used to seeing incremental increases in the middle of
the month
, with bigger declines usually happening in the beginning of the month
as forbearance plans expire.”

 

 

 

FHA and VA loans continue to have the greatest number
of active forbearances
, 1.114 million. This is 9.2 percent of those portfolios
and they have an unpaid principal balance of $192 billion. There now 991,000
GSE loans in forbearance, 3.6 percent of the total and representing $208
billion in unpaid principal. Portfolio/PLS forbearances number 660,000, 5.1
percent of those loans with a value of $164 billion. Eighty-two percent of
active forbearance cases have had their original terms extended.

By Jann Swanson , dated 2020-11-20 12:07:57

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Courtesy of Mortgage News Daily

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