Improvement in the number of active forbearance plans continued this past week. Entering the month, more than 2M forbearance plans were set to expire in September. That number is already down 350K to 1.7M in the first full week of the month as those expirations begin to be assessed for extensions and removals. After dropping by nearly 150K last week, the total number of mortgages in active forbearance declined another 66K (-2%) this week.
As of September 8, 3.7M homeowners remain in COVID-19-related forbearance plans. These loans represent 7% of the active mortgage universe, down from 7.1% last week. Together, they represent $789 billion in unpaid principal. Some 5% of all GSE-backed loans and 11.3% of all FHA/VA loans are currently in forbearance plans. Another 7.4% of loans in private label securities or banks’ portfolios are also in forbearance.