More Than Three Quarters of Forbearance Plans Now in Extension

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The share of mortgages in COVID-19-related forbearance plans fell to to 5.47% of all loans as of November 8, as homeowners continued to exit their plans, according to the Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey.

Thats down from 5.67% the previous week.

About 2.7 million homeowners remain in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance dropped 13 basis points to 3.36%.

Ginnie Mae loans in forbearance decreased 25 basis points to 7.70%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased by 32 basis points to 8.38%.

The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 25 basis points to 5.94%, and the percentage of loans in forbearance for depository servicers decreased 17 basis points from the previous week to 5.43%.

Mike Fratantoni, senior vice president and chief economist for the MBA, says there was a significant increase in the rate of forbearance exits for portfolio and PLS loans.

“More than 76 percent of borrowers in forbearance are now in an extension, as we are well past the six-month point for most borrowers’ forbearance plans,” Fratantoni says, in a statement.

“While the rate of new forbearance requests has declined and exits are increasing, homeowners who continue to be impacted by hardships related to the pandemic should contact their servicer for relief,” he adds.

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