Black Knight notes a large improvement in forbearance
statistics during the week ended March 9. The number of loans in active plans
dropped by 77,000 over the week, the largest single week decline since early
January, and lowered the number of plans to 2.6 million, a -2.9 percent change.
At the end of the reporting period the remaining loans represent 4.9 percent of
the nation’s 53 million mortgages and an outstanding principal balance of $515 billion. It was the first time since April 2020 that
fewer than 5 percent of U.S. mortgages were in forbearance.

 

 

Black Knight said the week’s improvement was due to
both the expected end of February expirations as well as servicers getting
ahead of the curve in processing extensions and removals
for the massive number
of borrowers with expiration dates at the end of March. Although more than 100,000
of those loans have already been extended or removed, over 800,000 plans with
end-of-March expirations must still be processed.

The company calls this “a daunting task for servicers”. They must review upcoming
expirations, taking action based on recent Housing and Urban Development and
Federal Housing Finance Agency expansion of maximum forbearance terms to 18
months. Servicers are expected to continue to use three months for the term of
extensions.

As of March
9, there were 871,000 Fannie Mae and Freddie Mac loans in forbearance, 3.1
percent of those portfolios. Forborne FHA and VA loans total 1.78 million and 659,000
are loans serviced for bank portfolios or private label security (PLS)
investors. Those loans represent 8.9 percent and 5.1 percent of their
respective portfolios.

By Jann Swanson , dated 2021-03-12 11:15:37

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Courtesy of Mortgage News Daily

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