Forbearance Plans Edge Higher

Andy Walden

Forbearance plans edged higher in mid-March, following a familiar pattern, led by portfolio/PLS loans.

According to our McDash Flash daily mortgage performance dataset, the number of active forbearance plans increased by 8,000 (1%) this week. A 9,000 (3.9%) rise in loans held in bank portfolios and private label securities (PLS) was partially offset by a 1,000 (-0.3) decline in FHA/VA plans. GSE plans held steady.

Both new plan starts and re-starts fell, with new plan starts hitting their lowest weekly total since Thanksgiving.

As of March 15, 726,000 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 41,000 (-5%) from the same time last month. Nearly 130,000 plans are still up for review by the end of March, with a third expected to be reaching their final expirations.