The share of mortgages in forbearance plans plummeted to 3.5% as of July 11, down from 3.76% the previous week, as forbearance exits edged up, according to the Mortgage Bankers Association’s (MBA) Forbearance and Call Volume Survey.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 8 basis points to 1.83%.
Ginnie Mae loans in forbearance decreased 42 basis points to 4.36%, while the forbearance share for portfolio loans and private-label securities (PLS) decreased 61 basis points to 7.33%.
The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 19 basis points to 3.68%, and the percentage of loans in forbearance for depository servicers decreased 36 basis points to 3.62%.
“Forbearance exits edged up again last week and new forbearance requests dropped to their lowest level since last March, leading to the largest weekly drop in the forbearance share since last October and the 20th consecutive week of declines,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “The forbearance share decreased for every investor and servicer category.
“The latest economic data regarding the job market and consumer spending continue to show a robust pace of economic recovery, which is supporting further improvements in the forbearance numbers as more homeowners are able to resume their payments,” he adds.
Photo: Sharon McCutcheon