The share of mortgages in forbearance plans fell six basis points to 2.15% of servicers’ portfolio volume during the week ended Oct. 24, according to the Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey.
Roughly 1.1 million homeowners remain in forbearance plans – which is a huge improvement from a year ago but nonetheless a major concern for mortgage servicers.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased three basis points to 0.97%.
Ginnie Mae loans in forbearance decreased seven basis points to 2.65%, and the forbearance share for portfolio loans and private-label securities (PLS) declined eight basis points to 5.13%.
The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased six basis points relative to the prior week to 2.43%, and the percentage of loans in forbearance for depository servicers decreased four basis points to 2.07%.
“For the first time since March 2020, the share of Fannie Mae and Freddie Mac loans in forbearance dropped below 1 percent,” notes Mike Fratantoni, senior vice president and chief economist rot he MBA, in a statement. “A small decline for this investor category was matched by similarly small declines for Ginnie Mae and portfolio/PLS loans.
“Forbearance exits slowed at the end of October to the slowest pace since late August,” Fratantoni adds. “With so many borrowers having reached the end of their 18-month forbearance term, we expect a steady pace of exits in November.”
Photo: Kaleb Tapp
