There was an increase in the number of loans in
forbearance over the last week as the share within all lender portfolios, even
the GSEs’, moved higher. Black Knight said, however, that an uptick in
mid-month has become common, generally driven by fewer borrowers exiting their
plans. This was true this past week as well. The strongest declines tend to occur
at the first of each month
, as plans that expired at the end of the previous
month are removed. The company says there are more than 550,000 plans set to expire at the end of
December, so there should be more positive news about plan removals in the
first week of January.

The total number of mortgages in active plans rose by
37,000 during the week ended December 15
. There are 2.787 million forborne
loans or 5.3 percent of the nation’s 53 million mortgages now in plans. These loans
represent $563 billion in unpaid principal. 

The number of FHA and VA loans in plans increased by
18,000 to 1.139 million or 9.4 percent of those portfolios. The second largest
growth was in private label security (PLS) and portfolio held loans, up 14,000
to 678,000 (5.2 percent). The change in GSE loans, which had been trending
down, was a modest 5,000 rise to 970,000. Only 3.2 percent of Fannie Mae and
Freddie Mac loans remain in forbearance.

Forbearance plan starts, both new plans and restarts,
fell this week. Black Knight says this can be seen as good news given the
overall increases
among all three portfolio categories.

By Jann Swanson , dated 2020-12-18 10:47:48

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Courtesy of Mortgage News Daily

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