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Forbearances Rise, True to Mid-Month Pattern
Friday, December 18, 2020
There was an increase in the number of loans in
forbearance over the last week as the share within all lender portfolios, even
the GSEs', moved higher. Black Knight said, however, that an uptick in
mid-month has become common, generally driven by fewer borrowers exiting their
plans. This was true this past week as well. The strongest declines tend to occur
at the first of each month, as plans that expired at the end of the previous
month are removed. The company says there are more than 550,000 plans set to expire at the end of
December, so there should be more positive news about plan removals in the
first week of January. The total number of mortgages in active plans rose by
37,000 during the week ended December 15. There are 2.787 million forborne
loans or 5.3 percent of the nation's 53 million mortgages now in plans. These loans
represent $563 billion in unpaid principal.
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