The number of loans in forbearance declined sharply over the course of the past week. Black Knight said the number of homeowners exiting their plans jumped to the highest level in four weeks due to end-of-May expirations. There were also noticeable declines in the number of borrowers returning to the program as well as new participants.

All told, the number of forbearances dropped by 71,000 or 3.2 percent over the week ended June 1. This leaves 2.12 million loans, 4.0 percent of the estimated 53 million active mortgages, in the various plans. GSE (Fannie Mae and Freddie May) forbearances fell by 26,000 and FHA/VA loans by 28,000. Portfolio and private label security (PLS) loans declined by 17,000.

Black Knight says 65,000 loans with scheduled May expirations remain await review decisions so there may be further improvements in the next report. At the end of June there will be 700,000 loans expiring, many facing their final quarterly review before entering their 18-month expiration in the fall.

As of June 1, there were 656,000 forborne loans remaining in the combined GSE portfolios along with 859,000 FHA/VA loans and 609,000 loans being serviced for bank portfolios and PLS investors.