Fratantoni noted that the number of borrowers who exited forbearance and went into modifications grew during the last week of October. This may be a sign that they have not yet regained their pre-COVID level of income, he said.
Approximately 13.4% of forbearance exits resulted in a loan modification or trial loan modification, 12% in reinstatements, and 7% in loans paid off through either a refinance or by selling the home. The remaining 1.4% ended up in repayment plans, deed-in-lieus, or other reasons.
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“The strong job market report from October, with another drop in the unemployment rate and a pickup in wage growth, is a positive sign for homeowners still struggling to get back on their feet,” Fratantoni said.