Forbearance Plans Dip in First Full Week of March
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.
We will continue to monitor the very latest forbearance data from the McDash Flash dataset and report our findings each week on this blog.