This is only the third overall increase over the past 12 weeks.
Furthermore, after seeing improvement accelerate as early forbearance entrants went through the 12-month review process in March and April, exit activity has since returned to more “normal” levels. Mid- to late-month increases in forbearance plan volumes like those seen in the past two weeks have been very common during the recovery to-date.
Other takeaways from Black Knight's data:
- The 1,000 (-0.1%) weekly decline in forbearances among GSE loans was more than offset by a 2,000 (+0.2%) increase among FHA/VA loans and a 15,000 (+2.5%) increase among portfolio-held and privately securitized mortgages
- Nearly 145,000 plans are still listed with May 2021 expirations, providing a moderate opportunity for additional improvements over the next two weeks and, more acutely, in early June
- Another 780,000 plans are currently slated for review for extension/removal in June, the final quarterly review before early forbearance entrants begin to reach their 18-month plan expirations later this year
- As of May 25, 2.2M (4.1% of) homeowners remain in COVID-19 related forbearance plans, including 2.4% of GSE, 7.3% of FHA/VA and 4.8% of portfolio/PLS loans.