Black Knight says that the number of active forbearance plans continued to fall over the last week, but also noted an uptick in both new plans and reentries to the program, primarily among VA and FHA loans. The number of active forbearances dropped by 22,000 or 1.4 percent during the week ended September 14, leasing 1.596 million borrowers in active plans. This is 3.0 percent of all mortgaged homeowners. It marks the first time the total number has dipped below 1.6 million.

The number of forborne loan in Fannie Mae and Freddie Mac (the GSEs) portfolios and those serviced for FHA and the VA each declined by 15,000, but that was partially offset by an increase of 8,000 in the numbers serviced for bank portfolios and private label securities (PLS).

Black Knight said new plans starts have been trending higher since mid-August. That both new starts and restarts are primarily occurring among FHA and VA loans may be coinciding with the deadline for joining those programs at the end of this month. However, with COVID-19 related unemployment benefits lapsing over the Labor Day weekend and virus cases spiking, it is difficult to pinpoint the exact cause.

 

 

At the end of the reporting period there were 473,000 GSE loans, 635,000 FHA/VA loans, and 488,000 portfolio/PLS loans remaining in the program. These loans represent 1.7 percent, 5.2 percent, and 3.8 percent of their respective portfolios.

Black Knight says there have been 218,000 plan exits over the first half of September, with plan extensions at the lowest in the program's history. There are more than 462,000 plans scheduled for review over the rest of the month with as many as 330,000 reaching their final expiration unless the program is again extended.