After the first wave of forbearance expiration in October, the forbearance rate shows the greatest rise and fall since the COVID-19 outbreak. According to experts from Black Knight, the busy activities in the forbearance happened as expected, though there may be further drops considering there are more waves of expiration.
According to Black Knight’s recent mortgage report, there were 700,000 forbearance plans expiring by the month of October. Out of which, 200,000 homeowners have successfully exited from the forbearance plan.
Two hundred twenty-five thousand homeowners were removed from forbearance last week, the largest number since the first week of October. Still, it was less than a third of what data collectors saw in that first week of the month, as there were far fewer plans set for expiration this month, reports Black Knight’s research team.
Forbearance decline by investor classes;
| GSE forbearance | Private portfolio | FHA/VA |
| 57,000 | 52,000 | 43,000 |
GSE forbearances continued to show the strongest rate of improvement—
The number of forbearance plans, as of this report, are down 48% from their peak in late May, followed by portfolio/PLS forbearances which are down 44% from their peak. FHA/VA loans continue to see the slowest improvement with forbearance volumes down just 27% from their peak earlier in the year.
Over the past few weeks, experts saw the largest volume of forbearance plans since April. According to experts, this rise and fall of forbearance activities were the repeat forbearances – homeowners who were previously on forbearance, exited from the plans, and have now restarted. The restarts compromises 57% of all forbearance plans.
Regardless of the reasons why homeowners are in forbearance plans, it is important to keep a close watch of the fast moving trend.
Is your forbearance plan expiring soon?
You can either speak with your loan servicer to arrange new payment terms or give Analytics Before Foreclosure a call to find out your options on how to move forward past the forbearance. Call now at 866-857-5405 for a FREE discovery call.
