The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 9 basis points from 5.14% of servicers’ portfolio volume in the prior week to 5.05% as of March 14, 2021. According to MBA’s estimate, 2.5 million homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance decreased to 2.83% — a 5-basis-point improvement. Ginnie Mae loans in forbearance decreased 13 basis points to 7.03%, while the forbearance shares for portfolio loans and private-label securities (PLS) decreased by 14 basis points to 8.91%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 8 basis points to 5.37%, and the percentage of loans in forbearance for depository servicers declined 4 basis points to 5.15%. Mike Fratantoni, MBA’s Senior Vice President and Chief Economist in a prepared statement said, “New forbearance requests decreased to their lowest level since last March. Combined with a steady pace of exits, this drop in new requests resulted in a larger decline in the share of loans in forbearance across all investor categories. More than 11% of borrowers in forbearance have now exceeded the 12-month mark. We anticipate that servicers will be busy over the next month, with many homeowners opting for the extension for up to 18 months recently made available for federally-backed loans.” Fratantoni added, “The pace of economic activity is picking up as the vaccine rollout continues. We expect that a stronger job market will help many successfully exit forbearance in the months ahead.”
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Share of Mortgage Loans in Forbearance Decreases to 5.05 Percent