Friday, February 26, 2021

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

by Calculated Risk on 2/26/2021 10:18:00 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 February 23rd.

From Black Knight

"The number of mortgages in active forbearance rose for the second week in a row, climbing by by 21K (+0.08) since last Tuesday, pushing the total back up above 2.7M after falling below that threshold for the first time since last April earlier this month. This week’s rise continues the trend of mid-month increases we’ve grown accustomed to seeing since the recovery began.

Despite the weekly increase, the monthly rate of decline held steady at -2%, continuing the trend of very slow but steady improvement in the number of outstanding forbearance cases. Remember: monthly declines have been averaging less than 2% since early December.

According our McDash Flash daily mortgage performance data set, as of February 23, 2.7M homeowners – 5.1% of all mortgage-holders – remain in active forbearance. This includes 9.3% of FHA/VA, 3.2% of GSE and 5.2% of portfolio/private mortgages"

Black Knight ForbearanceClick on graph for larger image.

"Once again, portfolio held and privately securitized loans saw the largest increase in plans (+16K / +2.4%), followed FHA/VA loans, which saw active forbearance plans rise by 7K (+0.6%). As was the case last week, GSE loans were the only cohort to see any sort of decline (-2K; -0.2%).

Some 160K forbearance plans are set to hit scheduled expiration points at the end of February."
emphasis added

The number of loans in forbearance has declined slightly over the last few months.