The latest data from the McDash Flash Forbearance Tracker shows that forbearance starts fell by 4% from last week. The number of loans in active forbearance declined for the 3rd consecutive week, falling by 27k from the previous week to 4.12M as of July 14th.
An estimated 7.77% of all mortgages are now in active forbearance, down from 7.82% last week, marking the lowest such forbearance rate since peaking in late May. Together, they represent nearly $900 billion in unpaid principal.
This week’s decline was driven almost entirely by a decrease in GSE related forbearances, which fell by 35k over the past week. We also observed a 2,000-loan decline in forbearances among portfolio held and private labeled security mortgages. FHA/VA loans saw a slight increase in forbearance volumes of +10k over the past 7 days.
CR Note: There will be another disaster relief package soon (aka CARES II), but we might see an increase in forbearance activity if the package isn’t available by early August.