HomeBlog HomeBlog PostsNumber of Forbearance Plans Falls for First Time Since Crisis Began

Number of Forbearance Plans Falls for First Time Since Crisis Began

Number of Forbearance Plans Falls for First Time Since Crisis Began

The latest data from the McDash Flash Forbearance Tracker shows that active forbearance volumes decreased by a net 34,000 over the past week, marking the first weekly decline since the crisis began.

As of May 26, 4.73 million homeowners are in forbearance plans, representing 8.9% of all active mortgages and more than $1 trillion in unpaid principal.  Some 7.1% of all GSE-backed loans and 12.3% of all FHA/VA loans are currently in forbearance plans.

A decline of 43,000 forbearances among government-backed mortgages from May 26 to June 2, was partially offset by an increase of 9,000 among mortgages in bank portfolios and private label securities.

At today’s level, mortgage servicers need to advance a combined $3.3 billion/month to holders of government-backed mortgage securities on COVID-19-related forbearances. That’s on top of the $1.5 billion in T&I payments they must make on behalf of borrowers.

Reminder: P&I advance payments have been capped at four months for servicers of GSE-backed mortgages. Given today’s number of loans in forbearance, servicers of GSE-backed loans still face up to $8.8 billion in advances over that four-month period.

According to the McDash Flash Payment Tracker, as of May 26, a significantly lower share of homeowners in forbearance had remitted May payments (22%) than did in April (46%), pointing to another likely rise in the delinquency rate for May.

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.