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Forbearances Up Slightly After Last Week's Plunge
Friday, October 16, 2020
Last week Black Knight reported that the beginning of
October saw a decline in the number of active forbearance plans of 649,000 or
18 percent as many plans reached the end of their initial period. It was the
largest single week decline since the crisis began. This week the number of loans
in forbearance edged up a bit. The company reported an increase of 19,000
plans, bringing the total to just under 3 million. Despite the increase, the
share of mortgages in forbearance held steady at 5.6 percent. Forbearances peaked
at 4.76 million plans in late May. All
investor classes saw slight upticks during the week. GSE forbearances rose by 3,000 to 1.11 million or 4.0
percent of the total portfolios and both FHA/VA and Portfolio and private label
securities(PLS) forbearances increased by 8,000. This brought total FHA/VA
loans in plans to 1.15 million, 9.5 percent of the total and portfolio/PLS
forbearances to 731,000 or 5.6 percent. Seventy eight percent of forbearance
plans have had their original terms extended.
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