Monday , November 29 2021
Home / Calculated Risk / Black Knight: "Forbearance Declines Hit Mid-Month Lull"

Black Knight: "Forbearance Declines Hit Mid-Month Lull"

Summary:
Note: Both Black Knight and the MBA (Mortgage Bankers Association) are putting out weekly estimates of mortgages in forbearance.This data is as of October 19th.From Andy Walden at Black Knight: Forbearance Declines Hit Mid-Month LullAfter two weeks of sizable drops in the number of active forbearance plans (as hundreds of thousands of homeowners reached the end of their allowable terms), we saw much more modest improvement this week – the same mid-month lull in removal activity that we’ve been reporting on for many months now.According to our McDash Flash daily forbearance tracking dataset, the number of active forbearance plans fell by just 7,300 (-0.6%) this week, with declines of 10,500 among FHA/VA loans and 2,800 among GSE mortgages being partially offset by a 6,000 rise in plan

Topics:
Calculated Risk considers the following as important:

This could be interesting, too:

Tyler Durden writes Soros, Druckenmiller, & The Mundell-Fleming Trilemma

Tyler Durden writes Inflation Stretching Budgets Thin For Americans As They Rethink Holiday Buying 

Tyler Durden writes New York Taxpayers Paid .5M In Cuomo Legal Fees So Far

Tyler Durden writes After Today’s “Crazy” Meltdown, What Is Oil’s Fair Value? Goldman Has The Answer

Note: Both Black Knight and the MBA (Mortgage Bankers Association) are putting out weekly estimates of mortgages in forbearance.

This data is as of October 19th.

From Andy Walden at Black Knight: Forbearance Declines Hit Mid-Month Lull
After two weeks of sizable drops in the number of active forbearance plans (as hundreds of thousands of homeowners reached the end of their allowable terms), we saw much more modest improvement this week – the same mid-month lull in removal activity that we’ve been reporting on for many months now.

According to our McDash Flash daily forbearance tracking dataset, the number of active forbearance plans fell by just 7,300 (-0.6%) this week, with declines of 10,500 among FHA/VA loans and 2,800 among GSE mortgages being partially offset by a 6,000 rise in plan volumes among portfolio and PLS mortgages. That’s substantially less than last week’s 143,000 (10%) drop.

As of October 19, 1.24 million mortgage holders remain in COVID-19 related forbearance plans, representing 2.3% of all active mortgages, including 1.3% of GSE, 3.9% of FHA/VA and 3% of portfolio held and privately securitized loans.

Black Knight: "Forbearance Declines Hit Mid-Month Lull"Click on graph for larger image.

Still, on a monthly basis, improvement remains strong, with forbearances declining by 356,000 (-22.3%) over the past 30 days, and the past few weeks have seen the fastest monthly rates of improvement since the start of the pandemic.

Some 432,000 homeowners left forbearance in the first 19 days of October, making it the largest single month in terms of exit volumes since October of last year. And with more than 280,000 plans still up for review through the end of October, significant opportunity remains for additional declines through the first few weeks of November.
emphasis added

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.