July 30, 2021

MP Now News

Mortgage News

Forbearances Tumble Due to May Expirations

The number of loans in forbearance has plummeted over the past week. Black Knight said the number of homeowners who got out of their plans rose to its highest level in four weeks due to the expiration in late May. There were also significant decrease in the number of borrowers returning to the program as well as new participants.

Overall, the number of deferrals in the week ending June 1 fell by 71,000 or 3.2 percent. That leaves 2.12 million loans, 4.0 percent of the estimated 53 million active mortgages, in the various plans. GSE’s (Fannie Mae and Freddie May) forbearances decreased by 26,000 and FHA / VA loans decreased by 28,000. Portfolio and private label securities (PLS) loans fell 17,000.

Black Knight says 65,000 loans scheduled to expire in May are pending review decisions therefore there may be further improvements in the next report. 700,000 loans will expire at the end of June, many of which are facing their final quarterly review before entering their 18-month maturity in the fall.

As of June 1, there were 656,000 deferred loans in the combined GSE portfolios as well as 859,000 FHA / VA loans and 609,000 loans serviced for bank portfolios and PLS investors.