Mortgages Loans in Forbearance Drops for First Time Since March

According to the latest Mortgage Bankers Association’s (MBA) Forbearance and Call volume survey, which covers the period from June 8 through June 14, 2020, and represents 76% of the first-mortgage servicing market (38.2 million loans), the total number of loans now in forbearance decreased – for the first time since the survey’s inception in March – from 8.55% of servicers’ portfolio volume in the prior week to 8.48% as of June 14, 2020. According to MBA’s estimate, 4.2 million homeowners are now in forbearance plans – down from almost 4.3 million homeowners the prior week. The breakdown is as follows: The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the second week in a row to 6.31%, which is a 7-basis-point improvement. The forbearance share for portfolio loans and private-label securities (PLS) declined by 19 basis points to 9.99%. Ginnie Mae loans in forbearance held steady for the third week at a share of 11.83%. The percentage of loans in forbearance for depository servicers dropped to 9.15%, and the percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased to 8.40%.