The number of deferred loans fell by 83,000 last week. This comes on top of a loan reduction of 71,000 in the first few days of August. Black Knight reminds you This type of change is typical at the beginning of each month as service staff conduct three month reviews from homeowners to determine if their forbearance plans are extended. As of August 1.74 million homeowners, 3.3 percent of those with a mortgage, remain in COVID-19-related plans, for the first time the number has fallen below 1.8 million.
The numbers have improved across all loan types. The loans serviced for bank portfolios and private label securities (PLS) decreased by 43,000 (-7.8 percent), so that 3.9 percent of these loans were tolerated. GSE (Fannie Mae and Freddie Mac) loans decreased by 15,000 and FHA and VA loans decreased by 25,000. This means that 1.9 percent of the GSE and 5.8 percent of the FHA / VA loans remain on deferral.
Black Knight says the number of active plans has decreased by 125,000 since the same point in July, and new plans, total launches, and reboots are at their lowest level since early last month. More than 110,000 homeowners have left the indulgence in each of the past two weeks.
Of the 185,000 plans that were reviewed in the week ending August 10, 62 percent left the program. There are more than 250,000 plans left for review for the remainder of the month. For about a third of them, this will be the final review before the plan expires under the currently allowed forbearance conditions.