Mortgage forbearances for homeowners affected
financially by the pandemic declined slightly over the past week. Black Knight
said that there were 200,000 plans scheduled to expire at the end of November,
probably accounting for the majority of the 39,000-loan downturn in the various
forbearance programs. Another 1 million plans are due to expire at the end of
As of December 1, there were a total of 2.76 million
loans remaining in plans, 5.2 percent of the 53 million active mortgages in
servicer portfolios and representing $561 billion in unpaid principal. Eighty-one
percent of those loans have
had their terms extended at some point since March.
The number of GSE (Fannie Mae and
Freddie Mac) loans in forbearance dropped by 25,000 during the week, leaving a
total of 967,000 homeowners remaining in plans. This is 3.5 percent of the
companies’ combined portfolios. FHA and VA loans decreased by 14,000 units to a
total of 1.118 million or 9.2 percent of those loans. Loans serviced for bank
portfolios or private label securities held steady at 677,000 loans or 5.2
percent of the total. There are 91,000 fewer loans in forbearance plans than
one month ago, a 3.2 percent decline.
The remaining loans in forbearance
require advanced principal and interest payments to investors of $3.4 billion per
month. Payments for property taxes and insurance premiums add another $1.2
billion per month to the outflow.