GSE forbearances continue to see the strongest rate of improvement, says Black Knight
After posting a slight uptick last week, forbearance volumes dropped by 137,000 (5%) this week, driven by October expiration activity, according to data released today by Black Knight.
There were 225,000 homeowners removed from forbearance last week, the largest number since the first week of October, according to Black Knight.
The decline in forbearance plans was seen across investor classes, according to Black Knight. GSE forbearances fell by 57,000 (5.2%). Portfolio/PLS forbearances dropped by 52,000 (7%), while FHA/VA forbearances fell by 43,000 (3.7%).
“GSE forbearances continue to see the strongest rate of improvement, with the number of forbearance plans now down 48% of their peak in late May, followed by portfolio/PLS forbearances, which are down 44% from their peak,” Black Knight said in an email to MPA. “FHA/VA loans continue to see the slowest improvement, with forbearance volumes down just 27% from their peak earlier in the year.”
As of Nov. 3, there were 2.9 million active forbearance plans, representing 5.4% of all mortgage holders. That’s down from 5.7% last week and the lowest level seen since mid-April. Together, they represent $584 billion in unpaid principal.
