The number of forbearance loans has risen over the past week, driven by the increase in bank lending Portfolios and Private Label Securities
(PLS). Black Knight said the first increase in nine weeks The number of indulgences given to Fannie Mae and Freddie Mac (the GSEs), the FHA, and the VA dropped to just 20,000. As of April 27, there were an estimated 2.39 million loans in the program, 4.4 percent of the country’s approximately 53 million mortgages.
The company noted that there has been a spike in forbearance towards the middle of the month for the past few months as the general trend of improvement continues. The plan volume decreased by 228,000 loans last month, 8.9 percent of the total.
The number of forbearances in the GSEs’ portfolios fell 9,000 loans to 736,000, or 2.6 percent, and the FHA and VA plans fell 2,000 to 944,000 (7.8 percent). The number of forbearances held for Portfolios and PLS increased by 31,000. Those plans now amount to 649,000, 5.0 percent of all managed plans.
The company expects 240,000 plans to expire this month, so further improvements can come this week and early May. Both ingress and egress activity declined this month, with outputs hitting their lowest weekly level since late February.