Forbearance volumes held relatively steady this week, falling by a modest 7K amid an expected mid-month lull in activity, but are down by 117k (5.4%) from the same time last month.
Improvements among GSE (-6K) and FHA/VA (-4K) forbearance plans were partially offset by a 3K increase in the number of active plans among portfolio-held and privately securitized mortgages.
Both plan starts and exits fell this week, with removals down 50% from last week (due to typical mid-month behavior and month-end review cycles). Exits are expected to ramp up toward the end of this month, but more acutely in early July. Meanwhile, new plan starts saw one of their lowest weekly totals since the onset of the pandemic, continuing the trend of gradual declines in start activity.
Some 400K plans are still scheduled for quarterly reviews for extension/removal over the next 2 weeks which could lead to additional plan exits as we near the 4th of July.
As of June 15, 2.06M (3.9% of) homeowners remain in COVID-19 related forbearance plans including 2.3% of GSE, 6.9% of FHA/VA and 4.5% of Portfolio/PLS loans.