The number of loans in active forbearance plans dropped by 2.7 percent last week. Black Knight says this continues a recent trend of strong improvements in the forbearance numbers in the early part of each month. The 61,000 loans that exited the program during the week ended May 11 leaves 2.16 million loans still in the various lender programs, 4.1 percent of all active mortgage loans.
Last week’s program exits affected all loan types. GSE (Fannie Mae and Freddie Mac) forbearance volumes declined by 13,000, 19,000 VA and FHA loans exited, and there was a 29,000 loan reduction in PLS/portfolio forbearances. This leaves 684,000 GSE loans, 881,000 VA and FHA loans, and 598,000 PLS portfolio loans in active plans.
The company says there remain another 250,000 loans with May expiration dates and 860,000 more are scheduled to reach the end of their current terms in June. The June review will be the final one before those who entered the program early in the pandemic begin their 18-month plan expirations in the fall.
Thirty-eight percent of loans reviewed for extension or removal over the last month were removed from the program, the highest such rate since mid-February.