Forbearance Plans See Typical Mid-Month Bump
Forbearance plan volumes extended their upward trend this week following a typical pattern of increased mid-month restarts.
According to our McDash Flash daily mortgage performance dataset, the number of active forbearance plans increased by 17,400 (2.4%) this week. Loans held in bank portfolios and private label securities (PLS) led an across-the-board increase rising 7,800 (3.3%), followed by FHA/VA plans (5,000, 3.3%) and GSE plans (4,500, 2%).
New plan starts held steady this week at 11,200. Restarts increased by 6,000 to a total of 31,700.
As of March 22, 743,000 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 1.9% of portfolio held and privately securitized mortgages.
Plans are down by 47,200 (-6%) from the same time last month. Nearly 97,000 plans are still up for review by the end of March, with 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.