Forbearance Volume Edges Up Again
Forbearance plan volumes extended their uptrend this week, following a typical pattern of intramonth increases.
According to our McDash Flash daily mortgage performance dataset, the number of active forbearance plans increased 17,300 (2.3%) this week. Loans held in bank portfolios and private label securities (PLS) rose by 7,000 (2.8%), leading an across-the-board increase. FHA/VA plan volumes rose 6,000 (2.1%), followed by a 5,000 (1.9%) uptick in GSE plans.
As of February 22, 790,000 homeowners remain in COVID-19-related forbearance plans – 1.5% of all active mortgages. The group includes 0.9% of GSE mortgages, 2.4% of FHA/VA and 2.0% of portfolio held and privately securitized mortgages.
Plans are down by 39,000 (-4.8%) from the same time last month.
The next significant opportunity for improvement will come in early March. More than 102,000 plans are up for review over the next couple of weeks, with a third expected to reach 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.