A decline in the number of forborne
loans in those portfolios serviced for banks and private label securities (PLS)
accounted for most of the modest downturn in overall numbers last week. Black
Knight said the number of active plans dropped by 9,000 loans or 0.3 percent compared
to the previous week. The the total of active plans is only 1.5 percent below
where it was in December, continuing a recent trend of slowing improvement. “This
further sets the stage for a great many plans to still be active when the first
wave of forbearance plans begin to expire at the end of March, the Black Knight
report says.”

Loans
serviced for bank portfolios and private label securities (PLS) declined by
13,000 loans. This was partially offset by a 4,000-loan rise in FHA and VA
loans. The number of forbearances in Fannie Mae and Freddie Mac’s portfolios
held steady week-over-week.

The
number of new forbearance plans rose, rose by 10,000 from the previous week but
were lower than the weekly average of 32,000 seen before the holidays. Many of
these loans were restarts
.  Approximately
370,000 active plans are slated to be reviewed for extension/removal by the end
of January.

As
of January 12, Black Knight estimates that 2.63 million or 5.1 percent of the
53 million active mortgages nationwide are in forbearance plans. Those loans
represent $545 billion in unpaid principal. About 15 percent of homeowners in
plans are current on their mortgage payments and 83 percent of the plans have
been extended
at some point since the program started in March.

There
are now 932,000 GSE loans in forbearance, 3.3 percent of their combined 28
million loan portfolio. FHA and VA plans total 1.135 million or 9.4 percent,
while bank/PLS forbearances account for 5.1 percent of those loans or 660,000
plans.

 

 

Advances
to investors and for payment of taxes and insurance have dropped significantly
since mid-May when the total monthly commitment of principal and interest was estimated
at $8.5 billion and $2.8 billion for payments out of escrow. The monthly aggregate
is now $3.3 billion, almost evenly distributed across the three investor
categories. Required payments of insurance and tax bills on forborne loans are
now estimated at $1.2 billion, $0.4 billion for each loan type.

By Jann Swanson , dated 2021-01-15 10:34:12

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Courtesy of Mortgage News Daily

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