Shares of Mortgages in Forbearance Decline for Thirteenth Week in a Row in Week Ending May 23, 2021

The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 1 basis point from 4.19% of servicers’ portfolio volume in the prior week to 4.18% as of May 23, 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 2 basis points to 2.19%. Ginnie Mae loans in forbearance decreased 4 basis points to 5.55%, while the forbearance shares for portfolio loans and private-label securities (PLS) increased 11 basis points to 8.37%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 2 basis points to 4.36%, and the percentage of loans in forbearance for depository servicers declined 1 basis point to 4.34%. 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 slightly declined, dropping by only 1 basis point, due to a slower pace of forbearance exits. This was the 13th straight week of declines. Forbearance re-entries increased to almost 5.6 percent, as more homeowners who had canceled forbearance needed assistance again. There was also an increase in the share of PLS and portfolio loans in forbearance, while the share for Fannie Mae, Freddie Mac, and Ginnie Mae loans decreased.” Fratantoni went onto say, “Housing market data continue to paint a picture of strong demand and constrained supply. The resulting rapid growth in home equity will benefit homeowners, whether they choose to retain or sell their properties.”