Active forbearance plans welcomed in the new year with a healthy drop.
According to our McDash Flash daily forbearance tracking dataset, the number of active forbearance plans fell by 73,000 (-8%) this week. FHA/VA plans led an across-the-board decrease, falling 30,000 (-10%) from the prior week. GSE plan totals decreased 27,000 (-9%), while portfolio-held and privately securitized (PLS) plans fell 17,000 (-8%).
As of January 4, 824,000 mortgage holders (1.6%) remain in COVID-19 related forbearance plans, including 1.0% of GSE, 2.3% of FHA/VA and 2.1% of portfolio/PLS. Forbearance plan starts edged slightly higher this week; however, the 4-week moving average remains 8% below the same time last month.
Overall, the number of active plans is down 123,000 (-13%) from the same time last month. Some modest opportunity remains for additional declines next week with 61,000 plans still listed as up for extension/removal in December 2021, more than 25,000 of which are expected to have reached their final expiration. An additional 186,000 plans are slated for extension/removal in January, although less than a third are expected to expire.