HomeBlog HomeBlog PostsActive Forbearance Plans Increase Slightly as Improvement Continues to Plateau

Active Forbearance Plans Increase Slightly as Improvement Continues to Plateau

Active Forbearance Plans Increase Slightly as Improvement Continues to Plateau

The trend of mid-month increases in active forbearance plans we’ve been reporting on for some time continues in 2021with the population of homeowners in such plans rising by 17,000 this week.  

According to the latest weekly snapshot of our McDash Flash daily mortgage performance data, 2.74 million homeowners were in active forbearance as of January 19. The population has been vacillating between 2.71 and 2.83 million since early November, when the country began seeing new coronavirus case spikes and resulting shutdowns.  

Removal rates have also slowed noticeably following the six-month point of forbearance plans. This suggests that those borrowers who remain in forbearance were likely more heavily impacted by the economic downturn and thus are less likely to leave such plans before the full allowable 12-month period runs down 

The 2.74 million loans remaining in active forbearance represents 5.2% of all mortgage holders, including 3.3% of GSE loans, 9.4of FHA/VA loans and 5.2of portfolio-held/privately securitized loansA weekly decline of 3,000 GSE loans in forbearance was more than offset by a 15,000 increase in plans among portfolioheld and privately securitized mortgages and a 5,000 increase among FHA/VA loans. 

Though we are a far cry from the peaks we saw last summer as far as the total number of active forbearance plans, the rate of improvement continues to be relatively slow. We’re seeing fewer new plan startswith that number holding steady at the three-week average and down 30 percent from the same week in DecemberAt the same time, plan removals remain weak, with this week recording the second lowest weekly removal volume observed to date since we began monitoring the situation in April.