The number of homeowners in active forbearance plans improved this week, falling by 22,000 (-0.8%) from last week, driven by month-end expiration activity. Improvements were seen across investor classes, with FHA/VA forbearances falling by 13,000; GSE forbearances declining by 8,000 and portfolio/PLS forbearances falling by a more modest 1,000 this week.
With more than 100,000 forbearance plans still listed with February month-end expirations, additional reviews and removal activity may be seen in the coming days.
Despite the weekly decline in outstanding forbearance plans, the month-over-month rate of improvement slowed, falling from -2% to -1.3%. This continues the trend we’ve been seeing in recent months of an incremental and sluggish rate of recovery.
As of March 2, 2.69 million (5.1% of) homeowners remain in forbearance, including 9.2% of FHA/VA, 3.2% of GSE, and 5.2% of portfolio/private mortgages.
All eyes will be on early April forbearance volumes to see how many of the 1.1 million plans currently set to expire at the end of March – just over 600,000 of which are 12-month expirations – will exit their plans, and what share will further extend their participation in available forbearance offerings.