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Forbearance Plans Edge Slightly Higher

Forbearance Plans Edge Slightly Higher

Forbearance plan volumes increased slightly in the last week of March, consistent with an established trend of early-month exits being partially offset by new starts and restarts later in the month.

According to our McDash Flash daily mortgage performance dataset, the number of active forbearance plans increased by a modest 3,700 this week. Loans held in bank portfolios and private label securities (PLS) increased 5,300 (2.1%). FHA/VA plans held steady, while GSE plans decreased by 1,800 (0.8%).

New plan starts declined slightly this week to 10,100, the lowest level in four months. Restarts fell by 11,500 to a total of 20,200.

As of March 29, 747,000 homeowners remain in COVID-19-related forbearance plans – 1.4% of all active mortgages. The group includes 0.8% of GSE mortgages, 2.2% of FHA/VA and 2.0% of portfolio held and privately securitized mortgages.

Plans are down by 40,000 (-5.1%) from the same time last month. The next opportunity for meaningful improvement will come in early April, as more than 80,000 plans with a March expiration date are scheduled for review, with a third expected to be reaching their final expirations.

We will continue to monitor the very latest forbearance data from the McDash Flash dataset and report our findings each week on this blog.