by Calculated Risk on 10/02/2020 12:29:00 PM

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

This data is as of September 29th.

From Forbearances up Slightly, First Rise in 6 Weeks

According to the latest weekly snapshot of Black Knight’s McDash Flash daily forbearance tracking data, the number of mortgages in active forbearance increased for the first time in six weeks, as plans rose by 21,000 over the last seven days.

The increase was driven primarily by an uptick among portfolio-held and private labeled security loans which rose by 28,000 for the week. FHA/VA loans also saw a slight increase of 2,000. Those increases were partially offset by a 9,000 decline in GSE forbearances.

Click on graph for larger image.

As of September 29, 3.6 million homeowners remain in COVID-19-related forbearance plans, or 6.8% of all active mortgages, unchanged from last week. Together, they represent $751 billion in unpaid principal.

Over the past month, active forbearance volumes are now down by 305,000 (-8%), with the strongest monthly declines seen among GSE and Portfolio/Private loans which have each fallen by 10%, with a more modest 4% decline among FHA/VA loans.
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Of the 3.6 million loans still in active forbearance, more than 75% have had their terms extended at some point since March.

With more than a million forbearance plans for which September’s mortgage payment was the last payment covered under forbearance plan – and another million set to expire in October – significant removal/extension activity is still likely over the next few weeks.

The ongoing COVID-19 pandemic continues to represent significant uncertainty for the weeks ahead. Black Knight will continue to monitor the situation and report our findings on this blog.
emphasis added