The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 2 basis points from 3.50 percent of servicers’ portfolio volume in the prior week to 3.48 percent as of July 18, 2021. According to MBA’s estimate, 1.74 million homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 1.81 percent. Ginnie Mae loans in forbearance decreased 1 basis point to 4.35 percent, while the forbearance share for portfolio loans and private-label securities (PLS) increased 5 basis points to 7.38 percent. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers remained the same relative to the prior week at 3.68 percent, and the percentage of loans in forbearance for depository servicers decreased 1 basis point to 3.61 percent.
“As is typical for mid-month reporting, forbearance exits slowed, and there was a slight increase in new requests,” says Mike Fratantoni, MBA’s senior vice president and chief economist. “The net result was a small drop in the share of loans in forbearance, the 21st consecutive week of declines. The forbearance share decreased for GSE and Ginnie Mae loans, but increased for portfolio and PLS loans, as new forbearance requests increased for this category.”
Total loans in forbearance decreased by 2 basis points relative to the prior week: from 3.50 percent to 3.48 percent. By investor type, the share of Ginnie Mae loans in forbearance decreased relative to the prior week: from 4.36 percent to 4.35 percent. The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative to the prior week: from 1.83 percent to 1.81 percent.
The share of other loans (e.g., portfolio and PLS loans) in forbearance increased relative to the prior week: from 7.33 percent to 7.38 percent. By stage, 9.8 percent of total loans in forbearance are in the initial forbearance plan stage, while 83.2 percent are in a forbearance extension. The remaining 7.0 percent are forbearance re-entries. Total weekly forbearance requests as a percent of servicing portfolio volume (#) increased relative to the prior week: from 0.03 percent to 0.04 percent.