The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey shows that the total number of loans now in forbearance increased to 8.46% of servicers’ portfolio volume as of the week ending May 24, up from 8.36% the prior week.
That percentage represents just over 4.2 million homeowners.
However, this 10-basis-point weekly increase is the smallest increase reported since the week of March 9.
Mortgages backed by Ginnie Mae again had the largest overall share of loans in forbearance by investor type (11.82%) and the largest increase from the previous week (22 basis points). The number of loans in forbearance for depository servicers rose to 9.19%, while the number of loans in forbearance for independent mortgage bank (IMB) servicers increased to 8.21%.
“MBA’s survey continues to indicate that fewer homeowners are seeking forbearance as more states across the country reopen their economies and prospects begin to improve. The share of loans in forbearance increased by only 10 basis points over the week of May 24th,” says Mike Fratantoni, MBA’s senior vice president and chief economist.
“Policy support for households, including expanded unemployment insurance benefits and other transfers, has helped many stay on their feet during this crisis,” he adds. “With 11.82 percent of Ginnie Mae loans currently in forbearance, FHA and VA borrowers are struggling the most.”
The share of Fannie Mae and Freddie Mac loans in forbearance increased relative to the prior week: from 6.36% to 6.39%. The share of other loans (e.g., private-label securities and portfolio loans) in forbearance increased relative to the prior week: from 9.54% to 9.67%.