The number of homeowners in forbearance plans rose over the most recent week. Black Knight says a 10,000 loan increase in the number of loans serviced for bank portfolios and private label securities (PLS) accounted for most of the growth.

As of August 24, there were 1.76 million loans in active plans or 3.3 percent of all mortgage loans. This is 12,000 more plan participants than at the end of the prior week. In addition to the higher number of portfolio/PLS loans, the number of FHA/VA loans increased 3,000. The volume of GSE (Fannie Mae and Freddie Mac) loans was reduced by 1,000.

 

 

The number of forbearances has shrunk by 132,000 (-7 percent) since this same point in July. Black Knight says more than 150,000 plans are scheduled for extension or removal over the last week of August, so there is room for some additional improvement.

In September, the number of scheduled reviews ramps up to almost 670,000. Of those, 415,000 loans will be receiving the final review unless there is further extension of the current forbearance term limits.

At the end of the reporting period there were 534,000 GSE loans remaining in plans, 1.9 percent of those portfolios. FHA and VA loans totaled 699,000 or 5.8 percent, and there were 530,000 portfolio/PLS loans or 4.1 percent of those loans. The unpaid principal balance of these loans totals $342 billion.