The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance fell by 2 basis points from 3.50% of servicers’ portfolio volume in the prior week to 3.48% 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%. Ginnie Mae loans in forbearance decreased 1 basis point to 4.35%, while the forbearance share for portfolio loans and private-label securities (PLS) increased 5 basis points to 7.38%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers remained the same relative to the prior week at 3.68%, and the percentage of loans in forbearance for depository servicers decreased 1 basis point to 3.61%.
In a statement prepared for the release of this week’s forbearance survey, Mike Fratantoni, MBA’s Senior Vice President and Chief Economist, said, “As is typical for mid-month reporting, forbearance exits slowed, and there was a slight increase in new requests. 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.”
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