The number of homeowners in active forbearance on their mortgages fell for the second consecutive week, according to Black Knight data. Overall, the number of active forbearance plans is down 77,000 from last week, and 112,000 from the peak during the week of May 22.
As of June 9, 4.66 million homeowners remain in forbearance plans, representing 8.8% of all active mortgages. That’s down from 8.9% last week. Together, the 4.66M represent just over $1 trillion in unpaid principal ($1,028B).
Some 7% of all GSE-backed loans and 12.2% of all FHA/VA loans are currently in forbearance plans. GSE loans saw the greatest reduction, with forbearances falling by 47,000 week-over-week, but decreases were seen across all investor classes. Last week saw a decline among government-backed mortgages partially offset by a rise in portfolio and PLS mortgages.
At today’s level, mortgage servicers need to advance a combined $3.5 billion/month to holders of government-backed mortgage securities on COVID-19-related forbearances. That’s on top of the $1.5 billion in T&I payments they must make on behalf of borrowers.