The overall trend of incremental improvement in the number of mortgages in active forbearance continues. According to the latest data from Black Knight’s McDash Flash Forbearance Tracker, the number of mortgages in active forbearance fell by another 71,000 over the past week, pushing the total under 4 million for the first time since early May.
As of August 10, 3.9 million homeowners were in active forbearance, representing 7.4% of all active mortgages, down from 7.5% the week prior. Together, they represent $852 billion in unpaid principal.
Some 5.4% of all GSE-backed loans and 11.5% of all FHA/VA loans are currently in forbearance plans. Another 7.9% of loans in private label securities or banks’ portfolios are also in forbearance. 73% of loans in active forbearance thus far have had their terms extended.
Over the past week, forbearance activity fell across the board, with 10% fewer new forbearance requests, nearly 40% fewer renewals and 20% fewer removals from the week prior. Renewals are lagging from earlier in the month due to the number of expirations we saw at the end of July, but as we move toward the middle of August, we see those numbers begin to normalize.
Once again, active forbearances declined across all investor classes over the past week. This week, portfolio-held and private labeled security loans saw the largest decreases both by volume (-36,000) and on a percentage basis (-3%). GSE loans in forbearance declined by 18,000 (-1%). FHA/VA loans saw their second weekly decline – albeit a modest one – falling by 8,000 (-1%).
Again, the ongoing COVID-19 pandemic around much of the country and the expiration of expanded unemployment benefits last month continue to represent significant uncertainty for the weeks ahead. Black Knight will continue to monitor the situation and provide updates via this blog.