Active mortgage forbearances have fallen by about 1 million from their peak in May, a drop of 21%, according to the latest data from Black Knight.
After holding steady for the previous couple of weeks, the total number of mortgages in active forbearance saw stronger-than expected improvement, dropping by about 147,000 last week, Black Knight found. The decline was driven primarily by portfolio-held loans, which fell by 75,000 last week, and GSE mortgages, which saw a drop of 49,000 active forbearance plans. FHA/VA loans in forbearance declined by 23,000.
“According to Black Knight’s McDash Flash Forbearance Tracker, as of September 1, 3.8m mortgages remain in active COVID-19 related forbearance plans, representing 7.1% of all active mortgages, down from 7.4%,” Black Knight said in an email to MPA. “Together, they represent $804 billion in unpaid principal. Of these, 75% have had their terms extended.”
Currently, 5.1% of all GSE-backed loans and 11.5% of all FHA/VA loans are in forbearance plans, Black Knight said. Another 7.5% of loans in private-label securities or bank portfolios are also in forbearance.