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Expirations Drive First Decline in Forbearances in Three Weeks
Friday, February 5, 2021
Black Knight says the number of loans in
forbearance saw a significant decline over the past week, driven, as the
company had said to expect, by plans expiring at the end of January. There was
a net decrease of 45,000 active plans (-1.6 percent), the first improvement in
three weeks. There are still 47,000 plans which were scheduled to expire on
January 31 which are currently being reviewed by servicers for an extension or
removal. This may mean additional modest declines over the next few days The greatest improvement was to the FHA
and VA loan numbers. Those combined portfolios shrunk by 2 percent or 23,000
loans. Twelve thousand loans in the Fannie
Mae and Freddie Mac (GSE) portfolios left forbearance, a -1.3 percent change. The
total forbearances serviced for bank portfolios and private label securities (PLS)
dropped by 10,000 or 1.4 percent.
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