Friday, November 06, 2020

Black Knight: Number of Homeowners in COVID-19-Related Forbearance Plans Decreased

by Calculated Risk on 11/06/2020 08:15:00 AM

Note: Both Black Knight and the MBA (Mortgage Bankers Association) are putting out weekly estimates of mortgages in forbearance.

This data is as of November 3rd.

From Black Knight: Forbearance Fall 5% After Slight Increase

After last week’s slight increase, the latest data from Black Knight’s McDash Flash Forbearance Tracker shows that nationwide forbearance volumes have fallen by 152,000 (-5%) since last Tuesday, driven by October forbearance expiration activity. This was roughly what was expected for the first week of the month, though we will be on the lookout for further potential drops, given the remaining scheduled expirations. With some 161,000 active forbearance plans having expired at the end of October, additional extension and/or removal activity could be seen in coming days.
...
As of Nov. 3, there are 2.9 million active forbearance plans, representing some 5.4% of mortgage-holders, down from 5.7% last week and the lowest we’ve seen since mid-April during the onset of the pandemic. Together, they represent $584 billion in unpaid principal.

Black Knight ForbearanceClick on graph for larger image.

There were 87,000 starts over the past week, the largest volume since April, but 57% of these were repeat starts for borrowers who had previously been in forbearance, left their plans, and have since returned. These forbearance starts and restarts are worth watching, as we see them trending upward. It may well be that this is still due to the drop in early October, but given the rising trend, they warrant a close eye.
emphasis added