With only a small fraction of active plans remaining after two years of pandemic-related mortgage forbearance, forbearance plan volumes edged downward at a decelerating rate entering March.
According to our McDash Flash daily mortgage performance dataset, the number of active forbearance plans decreased by 22,400 (-2.8%) this week. Loans in GSE plans led an across-the-board decline, falling 10,500 (-4.3%). Bank portfolio and private label securities (PLS) plans fell 6,300 (-2.4%), followed by FHA/VA plans (5,700, -2%).
As of March 1, 768,000 homeowners remain in COVID-19-related forbearance plans – 1.4% of all active mortgages. The group includes 0.8% of GSE mortgages, 2.3% of FHA/VA and 1.9% of portfolio held and privately securitized mortgages.
Plans are down by 73,300 (-8.7%) from the same time last month as we face an anniversary bump in plan expiration activity. Additional opportunity for improvement remains for next week, with 67,000 plans up for review, a third of which are expected to reach their final expirations.