The number of homeowners in forbearance plans has increased over the most recent week. Black Knight says a 10,000 loan increase in the number of loans managed for bank portfolios and private label (PLS) securities accounted for most of the growth.
As of August 24, 1.76 million loans were outstanding, or 3.3% of all mortgages. That’s 12,000 more plan participants than at the end of the previous week. In addition to the higher number of portfolio / PLS loans, the number of FHA / VA loans increased by 3,000. The volume of GSE loans (Fannie Mae and Freddie Mac) was reduced by 1,000.
The number of abstentions fell by 132,000 (-7%) since that same point in July. Black Knight says more than 150,000 plans are due to be extended or removed during the last week of August, so there is room for further improvements.
In September, the number of scheduled examinations stands at nearly 670,000. Of these, 415,000 loans will be subject to a final examination. unless there is a further extension of the current forbearance limits.
At the end of the reference period, 534,000 GSE loans remained in the plans, or 1.9% of these portfolios. FHA and VA loans totaled 699,000 or 5.8%, and there were 530,000 portfolio / PLS loans or 4.1% of these loans. The outstanding principal balance of these loans amounts to $ 342 billion.