The share of mortgages in forbearance fell 16 basis points to 4.50% as of April 11, according to the Mortgage Bankers Association’s (MBA) Forbearance and Call Volume Survey.
That’s down from 4.66%. Roughly 2.3 million homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased to 2.44% – an 8-basis-point improvement.
Ginnie Mae loans in forbearance decreased 17 basis points to 6.16%, while the forbearance share for portfolio loans and private-label securities (PLS) decreased by 31 basis points to 8.34%.
The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 17 basis points to 4.72%, and the percentage of loans in forbearance for depository servicers declined 13 basis points to 4.67%.
“The share of loans in forbearance decreased for the seventh straight week and has now dropped 40 basis points in the last two weeks,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “The forbearance share decreased for all three investor categories, with the rate for portfolio and PLS loans decreasing by 31 basis points this past week – the largest drop across investor categories.
“Forbearance exits increased for portfolio and PLS loans but decreased for GSE and Ginnie Mae loans,” Fratantoni says. “More than 36 percent of borrowers in forbearance extensions have now exceeded the 12-month mark.
“Economic data on home construction and consumer spending in March show a strong housing market and a quickened pace of economic activity,” Fratantoni adds. “Combined with the homeowner assistance and stimulus payments that many households are receiving, we expect that the forbearance numbers will continue to decline in the months ahead as more individuals regain employment. Homeowners who are still facing hardships and need to extend their forbearance term should contact their servicers.”
Photo: Behnam NorouziHire