Shares of Mortgages in Forbearance Decline for Eleventh Consecutive Week in Week Ending May 9, 2021

The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 14 basis points from 4.36% of servicers’ portfolio volume in the prior week to 4.22% as of May 9, 2021. According to MBA’s estimate, 2.1 million homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance decreased 8 basis points to 2.24%. Ginnie Mae loans in forbearance decreased 21 basis points to 5.61%, while the forbearance shares for portfolio loans and private-label securities (PLS) decreased by 29 basis points to 8.26%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 16 basis points to 4.42%, and the percentage of loans in forbearance for depository servicers declined 12 basis points to 4.35%. In a prepared statement Mike Fratantoni, MBA’s Senior Vice President and Chief Economist, said, “More homeowners exited forbearance in the first full week of May, leading to a 14-basis-point decrease in the forbearance share — the 11th straight week of declines. The rate of new requests dropped to 4 basis points, which is the lowest level since last March. Of those in forbearance extensions, more than half have been in forbearance for more than 12 months.” Fratantoni went onto say that, “The opening of the economy, as the successful vaccination effort continues, should lead to further reductions in the forbearance share. However, many homeowners continue to struggle. Borrowers who are reaching the end of their forbearance term should reach out to their servicer to review their options.”