The share of mortgages in COVID-19-related forbearance plans fell to 4.16% of servicers’ portfolio volume during the week ended May 30, according to the Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey.
However, the pace of forbearance exits continues to be sluggish: That’s down from 4.18% the previous week.
As of the end of the month, roughly 2.1 million homeowners were still in forbearance plans, according to the MBA.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 1 basis point to 2.18%.
Ginnie Mae loans in forbearance decreased 1 basis points to 5.54%, while the forbearance share for portfolio loans and private-label securities (PLS) decreased 6 basis points to 8.31%.
The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 2 basis points to 4.34%, and the percentage of loans in forbearance for depository servicers decreased 1 basis point to 4.33%.
“The share of loans in forbearance declined for the 14th straight week, with small drops across most investor types and all servicer types,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “Forbearance exits dropped to 6 basis points, the lowest weekly level since mid-February, but new forbearance requests, at 4 basis points, matched the recent weekly low from early May.
“Although the headline employment growth number for May was lower than many had anticipated, other data show evidence of a strengthening job market,” Fratantoni adds. “That is good news for homeowners who have been struggling and are looking for work, as more families can regain their incomes and start making their mortgage payments again.”
Photo: Pierre Bamin