The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 11 basis points from 4.04% of servicers’ portfolio volume in the prior week to 3.93% as of June 13, 2021. According to MBA’s estimate, 2 million homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance decreased 4 basis points to 2.05%. Ginnie Mae loans in forbearance decreased 7 basis points to 5.15%, while the forbearance shares for portfolio loans and private-label securities (PLS) decreased 35 basis points to 7.98%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 16 basis points to 4.05%, and the percentage of loans in forbearance for depository servicers declined 3 basis points to 4.16%.
In remarks 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 16th straight week, with declines across almost every loan category. New forbearance requests, at 4 basis points, remained at an extremely low level. More than 44 percent of borrowers who exited this week used a deferral plan, highlighting the importance of this option.” Fratantoni added, “As more homeowners reach the end of their forbearance term, we should continue to see the share in forbearance decline. The improving job market and strong housing market are providing support for those who do exit.”
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Share of Mortgage Loans in Forbearance Decreases to 3.93%