Mortgage Loans in Forbearance Drop for Third Week in a Row

The June 28^th 2020, Mortgage Bankers Association’s (MBA) Forbearance and Call Volume Survey reports that the total number of loans now in forbearance decreased by 8- basis points from 8.47% of servicers’ portfolio volume in the prior week to 8.39% as of June 28, 2020. According to MBA’s estimate, almost 4.2 million homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the fourth week in a row to 6.17%, a 9-basis-point improvement. Ginnie Mae loans in forbearance decreased -11 basis points to 11.72%. The forbearance share for portfolio loans and private-label securities (PLS) increased by 1 basis point to 10.08%. The percentage of loans in forbearance for depository servicers dropped to 9.03%, while the percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased to 8.33%.