The number of active forbearance plans fell by 18,000 (-1.4%) this week, leaving 1.58 million U.S. homeowners in COVID-19 forbearance as of September 21.
Declines of 11,000 and 10,000 among FHA/VA and GSE loans respectively were partially offset by a 3,000 rise in PLS/portfolio plans. Overall, forbearances are now down 182,000 (-10%) from the same time last month, with the strongest decline (-13%) seen among GSE plans.
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.
In terms of forbearance plan starts, 15,000 new plans were initiated since last Tuesday – down slightly from last week’s 16,000 starts – while 34,000 plans were restarted, compared to last week’s volume of 35,000. Meanwhile, in typical mid-month behavior, plan exits dipped slightly this week, but are expected to ramp up in coming weeks.
More than 460,000 plans are still slated for review for extension/removal over the final week of September, with some 300,000 set to reach their final expirations based on current allowable forbearance term lengths. This could lead to significant movement in volumes entering early 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.