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January Active Forbearance Numbers Fall Yet Again

Mortgages that are in active forbearance plans continue to fall in January, led by FHA/VA plans. 

According to Black Knight’s [1] McDash Flash daily mortgage performance dataset [2], which covers more than 197 million home loans and home equity data on more than 27 million loans and lines of credit, the number of loans in active forbearance fell by 73,000 or 8%.  

The data shows that as of January 7, 824,000 mortgage holders remain in COVID-19 related forbearance plans, representing 1.6% of all active mortgages, including 1.0% of GSE (representing 272,000 loans), 2.3% of FHA/VA (273,000 loans) and 2.1% of portfolio/PLS (278,000 loans). 

The amount of loans in forbearance fell below the 2% mark for the first time in November.  

Overall, the number of active plans is down 123,000 (-13%) from the same time last month,” said report author Andy Walden [3]. “Some modest opportunity remains for additional declines next week with 61,000 plans still listed as up for extension/removal in December 2021, more than 25,000 of which are expected to have reached their final expiration. An additional 186,000 plans are slated for extension/removal in January, although less than a third are expected to expire.” 

The average payment missed by home on forbearance stands at $1,015. Breaking it down by loan type, the payment for GSE's was $1,122, while the missed payments for FHA/VA loans and portfolio/PLS loans were $873 and $1,034, respectively.