Forbearance volumes fell by 61,000 (-2.9%) from last week to this week, continuing the trend of early month declines in forbearance volumes. Declines were seen across all investor classes, with portfolio/PLS loans seeing the largest improvement (-33K), while FHA/VA (-19K) and GSE (-9k) forbearances also saw meaningful declines.
Plan starts did rise this week, following the Memorial Day-shortened week, but remain relatively low, considering. For the second week in a row, more than 100,000 homeowners left their forbearance plans, with roughly one-third of loan reviews for extension or removal resulting in removals.
Some 530,000 plans are still scheduled for quarterly reviews for extension/removal over the next three weeks, which could lead to additional plan exits as we near the July 4 holiday.
Fewer than 4% of all mortgage-holders are now in forbearance, the first time since the onset of the pandemic this number has fallen so low.
As of June 8, 2.06 million (3.9% of) homeowners remain in COVID-19-related forbearance plans, including 2.3% of GSE, 6.9% of FHA/VA and 4.4% of portfolio/PLS loans.