Forbearance Numbers Are Back Above 3 Million
Data from Black Knight, Inc. showed that forbearance activity in October has driven the number of active forbearances back to more than three million. This translates to 5.7% of all active mortgages and about $619 billion in unpaid principal, a slight increase from last week's 5.6%, according to the report.
In just this past week alone, Black Knight reported that active forbearances rose by 31,000. The company attributes this increase to limited extension and removal activity, as well as an increase in forbearance starts. There were also 50,000 forbearance removals this week, the lowest of any week during the recovery stage. Additionally, there were 89,000 extensions, the fewest that Black Knight has reported in nine weeks.
"In total, forbearance plan starts are up 15% in October compared to the month prior, with the rise driven by borrowers reactivating previously expired plans," according to the report. "New forbearance activations are down 7% from September, while re-activations are up 50%. This is most likely in reaction to the large volume of plans than were removed early in the month."
"Some 3.9% of all GSE-backed loans and 9.7% of all FHA/VA loans are currently in forbearance plans. Another 5.7% of loans in private-label securities or banks’ portfolios are also in forbearance. Since last week, GSE forbearances have declined by 1,000, while FHA loans saw an increase of 14,000, with a jump of 18,000 among loans held in banks’ portfolios and private-label securities."
Click here to view the full report.
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