As we mentioned last week, there were still more than 300,000 homeowners in forbearance whose plans were scheduled for review by the end of June. Well, of the roughly 146,000 plans reviewed for extension or removal over the past week, 44,000 homeowners left forbearance, while the plans of the other 102,000 were extended.
All in all, we wound up with a net decline of 6,000 plans. Not overly impactful, but it does set us up nicely for what could be a larger improvement next week as some 218,000 plans were still scheduled for review by Wednesday, June 30.
Our weekly snapshots run through Tuesday, though. As of June 29, our McDash Flash daily loan-level performance dataset showed 2.05 million homeowners – representing 3.9% of mortgaged properties – remaining in COVID-19 related forbearance plans.
This puts the overall number of active plans down 145,000, a 6.6% decline from the same time last month with the rate of improvement picking up from 6% last week and 5.4% the week before.
A 5,000 reduction in the number of active GSE forbearance plans and a 2,000 drop in FHA/VA plans were partially offset by a rise of 1,000 among portfolio and privately held mortgages.
Plan starts continued to fall over the last seven days. In fact, last week saw the lowest total starts in five weeks (since the shortened business week of Memorial Day). There have been about 9% fewer starts over the last four weeks than there were in the preceding four-week period.
We will continue to monitor the very latest forbearance data from the McDash Flash dataset and report our findings each week on this blog. For monthly deep dives into the matter, be sure to look for our Mortgage Monitor report on the first Monday of every month. Given the 4th of July holiday, next week’s will be published on Wednesday instead.