After holding flat for the last couple of weeks, the total number of mortgages in active forbearance saw stronger than expected improvement, with the number of active forbearance plans declining by 147k (-4%) over the past week.
According to Black Knight’s Forbearance Tracker, active forbearances are now down about 1M (-21%) since the peak in May. Overall, COVID-19 related forbearance levels continue to improve, albeit slowly and in somewhat of a stairstep manner.
As of September 1, 3.8M mortgages remain in active COVID-19 related forbearance plans, representing 7.1% of all active mortgages, down from 7.4%. Together, they represent $804 billion in unpaid principal. Of these, 75% have had their terms extended.
The decline was primarily driven by portfolio-held loans, which fell by 75K this week, along with GSE mortgages which saw a 49K decline in the number of active forbearance plans. FHA/VA loans saw a more modest weekly decline at -23K.