The number of active forbearance plans fell by 92,000 (-5.4%) this week, driven by lingering August expirations and new activity taking place in September.
Volumes fell significantly across all investor classes, with portfolio/PLS plans seeing the greatest decline at 40,000 (-7.7%). Plans were also down by 26,000 among both FHA/VA and GSE loans, for -3.8% and -5.1% declines respectively. Overall, plan volumes are now down 129,000 (-7.4%) from the same time last month and have fallen by 3.1 million (-67%) from their peak in May 2020.
Additional activity is expected later in the month as well, with nearly 540,000 plans still scheduled for review for extension/removal in September. Of those, nearly 400,000 are set to reach their final plan expirations based on current allowable forbearance term lengths.
Significant volume declines could be seen in coming weeks as those plans reach their final expirations and exiting borrowers return to making mortgage payments in October. We will continue to monitor the very latest forbearance data from the McDash Flash dataset and report our findings each week on this blog.