There was a huge reduction in the number of borrowers in COVID-19 related forbearance plans last week as servicers plowed through the remaining August-expired plans and began processing them with September reviews. Black Knight says a network of 92,000 homeowners have left the program in the week ending September 7, a decrease of 5.4 percent. The owed population is now 1.618 million loans, 3.1 percent of the 53 million mortgage universe.
The decline was evident across all investor classes, with bank portfolio loans and those serviced for private label security (PLS) investors falling by 40,000 or 7.7 percent. Both the Fannie Mae and Freddie Mac combined category (GSE loans) and the FHA / VA portfolios saw 26,000 borrowers exits, down 3.8 and 5.1 percent, respectively.
At the end of the reporting period, 488,000 GSE loans, 650,000 FHA / VA loans, and 480,000 portfolio / PLS loans were still in active plans. These loans account for 1.7 percent, 5.4 percent and 3.7 percent of their respective total portfolios. The number of deferred loans has fallen by 129,000 and 3.1 million since the first week of August or 67 percent from the May 2020 peak.
The company says nearly 540,000 homeowners will be screened this month with a view to extending their plans or removing them from the program. Of these, 400,000 will reach their final expiration date in September unless the allowable terms are extended.