Shares of Mortgages in Forbearance Decline for Seventh Straight Week in Week Ending April 11, 2021

The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 16 basis points from 4.66% of servicers’ portfolio volume in the prior week to 4.50% as of April 11, 2021. According to MBA’s estimate, 2.3 million homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance decreased to 2.44% — an 8-basis-point improvement. Ginnie Mae loans in forbearance decreased 17 basis points to 6.16%, while the forbearance shares for portfolio loans and private-label securities (PLS) decreased by 31 basis points to 8.34%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 17 basis points to 4.72%, and the percentage of loans in forbearance for depository servicers declined 13 basis points to 4.67%. Mike Fratantoni, MBA’s Senior Vice President and Chief Economist in a prepared statement said, “The share of loans in forbearance decreased for the seventh straight week and has now dropped 40 basis points in the last two weeks. The forbearance share decreased for all three investor categories, with the rate for portfolio and PLS loans decreasing by 31 basis points this past week – the largest drop across investor categories. Forbearance exits increased for portfolio and PLS loans but decreased for GSE and Ginnie Mae loans. More than 36% of borrowers in forbearance extensions have now exceeded the 12-month mark.” Fratantoni added, “Economic data on home construction and consumer spending in March show a strong housing market and a quickened pace of economic activity. Combined with the homeowner assistance and stimulus payments that many households are receiving, we expect that the forbearance numbers will continue to decline in the months ahead as more individuals regain employment. Homeowners who are still facing hardships and need to extend their forbearance term should contact their servicers.”