Shares of Mortgages in Forbearance Decline for Fourteenth Week in a Row in Week Ending May 30, 2021

The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 2 basis points from 4.18% of servicers’ portfolio volume in the prior week to 4.16% as of May 30, 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 1 basis point to 2.18%. Ginnie Mae loans in forbearance decreased 1 basis points to 5.54%, while the forbearance shares for portfolio loans and private-label securities (PLS) decreased 6 basis points to 8.31%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 2 basis points to 4.34%, and the percentage of loans in forbearance for depository servicers decreased 1 basis point to 4.33%.

In a statement prepared for the release of this week’s survey Mike Fratantoni, MBA’s Senior Vice President and Chief Economist said, “The share of loans in forbearance declined for the 14th straight week, with small drops across most investor types and all servicer types. Forbearance exits dropped to 6 basis points, the lowest weekly level since mid-February, but new forbearance requests, at 4 basis points, matched the recent weekly low from early May.” Fratantoni went on to say, “Although the headline employment growth number for May was lower than many had anticipated, other data show evidence of a strengthening job market. That is good news for homeowners who have been struggling and are looking for work, as more families can regain their incomes and start making their mortgage payments again.”