The number of homeowners in forbearance plans reached a peak during the week ending June 07, 2020, when there were 4.7 million, and the rate stood at 8.55%. Since then, the number has been dropping steadily to a third of what it was just over a year ago.
Read more: No deluge of foreclosures expected, says MBA’s Marina Walsh
Walsh pointed out that the current forbearance period would end on September 30 and cautioned that delinquencies for different loan types was still a source of concern.
Speaking to MPA, she said: “There are going to be those borrowers in September and October that have reached the end of their forbearance period, and so they’re in a situation where servicers are busy trying to place them into the appropriate loss mitigation plan.
“The FHA delinquency rate is down to 12.77%. But if you look at it historically the seriously delinquent rate for the different loan type is still relatively high. It’s not at the peak of where it was during the Great Recession…but it’s right up there, so that’s really where our focus is right now.”