After two consecutive monthly increases, forbearance activity volumes recently declined, according to Black Knight’s McDash Flash Forbearance Tracker. Black Knight’s Andy Walden mentioned that the dip was a result of January’s program expirations. Specifically, the total loans in active forbearance this previous week decreased by 45,000 or 1.6%.
As of last Tuesday, an extra 47,000 programs were set to expire on January 31. “As servicers review those plans for extension or removal, we could see some further, modest declines over the next few days,” notes Walden.
By Loan Type
All types of loans saw declines. The biggest reductions were seen in FHA/VA loans. They saw a -23,000/ -2%, and a 12,000 or -1.3% drop amongst GSE-backed loans. There was a 10,000 or 1.4% decrease in private loan forbearances.
While last week’s numbers seem motivating, data analysis professionals state that progress mainly continues to be limited.
When examining the numbers, it is very important to remember that since February 2, 2.72 million home owners, 5.1% of debtors, stay in active forbearance programs. This is a result of the COVID-19 crisis. The total numbers after last month have actually decreased by only 1.5% or 42,000.
Over Time
“Volumes have been essentially stuck in the 2.72M – 2.81M range since early November,” Black Knight reports. “As we move toward the middle of February, keep in mind the trend of mid-and late month increases in active forbearance plans.”
Looking ahead
With 390,000 programs set to expire at the end of February, this would be the last opportunity for notable improvements in forbearance activity. The first wave of plans reaching the anticipated 12-month expiration at the end of March.
If you’re in forbearance, don’t hesitate to have a solution that works for you and your family. Dial 866-857-5405 for a FREE discovery call to help analyze your situation and come up with favorable outcomes.
