Shares of Mortgages in Forbearance Decline for Sixth Straight Week in Week Ending April 4, 2021

The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 24 basis points from 4.90% of servicers’ portfolio volume in the prior week to 4.66% as of April 4, 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 2.52% — a 20-basis-point improvement. Ginnie Mae loans in forbearance decreased 45 basis points to 6.33%, while the forbearance shares for portfolio loans and private-label securities (PLS) decreased by 15 basis points to 8.65%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 29 basis points to 4.89%, and the percentage of loans in forbearance for depository servicers declined 23 basis points to 4.80%. Mike Fratantoni, MBA’s Senior Vice President and Chief Economist in a prepared statement said, “The share of loans in forbearance decreased for the sixth straight week, dropping by 24 basis points — one of the largest decreases in the history of the series. The forbearance shares also decreased significantly for all three investor categories, with the rate for Ginnie Mae loans down an impressive 45 basis points. Overall, forbearance exits increased to their fastest pace since early November. Almost 32% of borrowers in forbearance extensions have now exceeded the 12-month mark. In terms of performance, more than 88% of homeowners who have exited into deferral plans, modifications, or repayment plans were current on their loans at the end of March, compared to 92% of all homeowners.” Fratantoni added, “The accelerating economic recovery in March helped more homeowners recover and become current on their mortgages, in addition to helping other homeowners with more stable financial situations exit forbearance. Homeowners who are still facing hardships and need to extend their forbearance term should contact their servicers.”