Forbearance Plans Dip in First Full Week of March

Andy Walden

Forbearance plans hit a post-pandemic low, driven by February month-end expiration activity.

According to our McDash Flash daily mortgage performance dataset, the number of active forbearance plans decreased by 49,800 (-6.5%) this week. Loans held in bank portfolios and private label securities (PLS) led an across-the-board decline, falling 20,300 (-8.1%). FHA/VA plans fell 15,300 (-5.4%), followed by GSE plans (14,300, -6.1%).

As of March 8, 718,000 homeowners remain in COVID-19-related forbearance plans – 1.4% of all active mortgages. The group includes 0.8% of GSE mortgages, 2.2% of FHA/VA and 1.8% of portfolio held and privately securitized mortgages.

Plans are down by 42,700 (-5.6%) from the same time last month. The next significant opportunity for improvement will come in early April, with 154,000 plans still up for review, and a third expected to be reaching their final expirations.