The rate of forbearance on mortgages fell to 3.26% of servicers’ portfolio volume during the week ended Aug. 8, down from 3.40% the previous week, according to the Mortgage Bankers Association’s (MBA) Forbearance and Call Volume Survey.
Despite the 14-point basis drop, 1.6 million homeowners remain in forbearance plans, according to the MBA’s estimates.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 5 basis points to 1.69%.
Ginnie Mae loans in forbearance decreased 23 basis points to 3.95%, while the forbearance share for portfolio loans and private-label securities (PLS) decreased 32 basis points to 7.05%.
The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 17 basis points to 3.46%, and the percentage of loans in forbearance for depository servicers decreased 13 basis points to 3.36%.
“The largest decrease in a month in the share of loans in forbearance came from a jump in forbearance exits, as many homeowners are nearing the end of their forbearance terms,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. ”The forbearance share declined for all investor and servicer categories. New forbearance requests picked up slightly this week, particularly for Ginnie Mae loans, but overall trends remain positive. Incoming data continues to support our forecast of an improving job market in the months ahead.”