The latest data from the McDash Flash Forbearance Tracker shows that forbearance starts fell by 4% from last week. The number of loans in active forbearance declined for the third consecutive week, falling by 27,000 from the previous week to 4.12 million as of July 14.
An estimated 7.77% of all mortgages are now in active forbearance, down from 7.82% last week, marking the lowest such forbearance rate since peaking in late May. Together, they represent nearly $900 billion in unpaid principal.
This week’s decline was driven almost entirely by a decrease in GSE related forbearances, which fell by 35,000 over the past week. We also observed a 2,000-loan decline in forbearances among portfolio held and private labeled security mortgages. FHA/VA loans saw a slight increase in forbearance volumes of more than 10,000 over the past seven days.
Black Knight will continue to provide weekly McDash Flash Forbearance Tracker updates via this blog. Those interested in staying up to date on industry developments are encouraged to visit the blog for more information in the coming days and weeks.