The number of active forbearance plans fell by another 11,000 (-1.4%) this week, leaving 1.58 million U.S. homeowners in COVID-19 forbearance as of Sept. 28. Larger declines are likely in the coming weeks.
As a reminder, we’ve seen the largest declines in forbearance volumes typically come during the first week of the month, as plans which expired in the prior month are deactivated in servicing systems of records.
Overall, forbearances are now down 192,000 (-11%) from the same time last month, marking the fastest rate of decline we’ve seen since July as early forbearance entrants begin to reach their final expirations.
The population of mortgage holders in COVID-19 related forbearance plans represents 3% of all active mortgages, including 1.7% of GSE, 5.2% of FHA/VA and 3.8% of portfolio held and privately securitized loans.
Given the sheer number of expirations on tap, attention now turns to forbearance volumes over the next two weeks and again in early November. More than 300,000 active plans are slated for review for extension/removal in September, the majority of which are facing final expirations based on current agency guidelines. Another 480,000 plans are up for review for extension/removal 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.