Shares of Loans in Forbearance Continued to Decline in the Week Ending October 31, 2021

The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 9 basis points from 2.15% of servicers’ portfolio volume in the prior week to 2.06% as of October 31, 2021. According to MBA’s estimate, 1 million homeowners are in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance decreased 5 basis points to 0.92%. Ginnie Mae loans in forbearance decreased 13 basis points to 2.52%, and the forbearance share for portfolio loans and private-label securities (PLS) declined 13 basis points to 5.00%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 15 basis points relative to the prior week to 2.28%, and the percentage of loans in forbearance for depository servicers decreased 5 basis points to 2.02%.

In remarks prepared for the release of this week’s forbearance survey, Mike Fratantoni, MBA’s Senior Vice President and Chief Economist said, “One million homeowners remained in forbearance as we reached the end of October, but the forbearance share continued to decline, with larger declines for portfolio and PLS loans.”

“More borrowers who exited forbearance the last week of October went into modifications, a sign that they have not yet regained their pre-pandemic level of income,” Fratantoni added. “The strong job market report from October, with another drop in the unemployment rate and a pickup in wage growth, is a positive sign for homeowners still struggling to get back on their feet.”

FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.
Original Source:
Share of Mortgage Loans in Forbearance Decreases to 2.06 Percent