August 5, 2021

MP Now News

Mortgage News

Forborne Mortgages Edge Below 4 Percent Share

The number of deferred loans declined 61,000, or 2.9 percent, for the week ending June 8. Black Knight said 2.06 million loans remain in various forbearance programs, 3.9 percent of all active mortgages.

There was significant declines in all lender programs. Loans serviced for bank portfolio or private label security (PLS) investors saw the strongest change with 33,000 fewer deferred loans. Those served for the FHA and VA decreased by 19,000, and for Fannie Mae and Freddie Mac (the GSEs) the decrease was 9,000.

As of June 8, 647,000 GSE loans, 2.3 percent of those loans, as well as 840,000 FHA / VA loans and 576,000 portfolio / PLS loans were still pending. The latter two figures represent 6.9 percent and 4.4 percent of the respective portfolios.

Black Knight said while they were still low, schedule starts rose as the week wore on, compensating for the 100,000-plus homeowners who left the program. About a third of the servicer reviews on extension or removal resulted in the latter.

Approximately 530,000 plans are scheduled for quarterly review over the past three weeks. The company says what happens in early July will largely dictate the future of the program so many plans go into the last three months of deferral protection.