Forbearances Rise Again: Black Knight

The number of mortgages in active forbearance was up again, rising by 20,000 from Tuesday of the previous week. That’s according to Black Knight’s McDash Flash Forbearance Tracker.

This increase continues the trend of mid-and late month increases in active forbearance plans since the recovery’s been underway.

A 4,000 weekly decline in active GSE forbearance plans was more than offset by a 9,000 increase in FHA/VA forbearance plans along with a 15,000 increase among portfolio-held and privately-securitized loans. More broadly speaking, the rate of improvement among GSE loans continues to significantly outpace other investor classes. GSE forbearances are now down 4% month over month, roughly four times the rate of decline among FHA/VA (-1%) and portfolio held and privately securitized forbearances (-1.3%).

Across the market, the monthly rate of decline in forbearance plans held steady at -2.1% as exits from plans continue to remain muted. Just 41,000 homeowners left their plans this week, making it one of the three lowest weeks in terms of removals since the recovery began.

There are some 172,000 forbearance plans still scheduled to expire at the end of January, which represents a modest opportunity for volume improvement next week.

As of January 26th, 2.76 million, or 5.2% of homeowners, remain in forbearance. Together, they represent $551 billion in unpaid principal and including 3.3% of GSE loans, 9.5% of FHA/VA loans, and 5.3% of portfolio held/privately securitized loans.