Forbearance Plans Resume Downtrend After Last Week's Uptick

The number of homeowners in COVID-19 forbearance dropped sharply this week, to the lowest level since the first week of May. The number of plans which hit a peak on May 22 then declined slowly over the next three weeks but shot up by nearly 80,000 loan plans during the week ended June 23. Black Knight's survey of mortgage loan servicers found a resumption of the downward trend this week, with plans falling by 104,000, the largest decline so far. As of June 30, there were 4.58 million homeowners in forbearance due to pandemic related financial problems, down 183,000 from the peak. This is 8.6 of the nation's active mortgages, compared to 8.8 last week and represents $995 billion in unpaid principal. The declines were across all portfolios. Forbearance plans among loans serviced for the GSEs...(read more)

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