Shares of Mortgages in Forbearance Decreased in Week Ending February 28, 2021

The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 3 basis points from 5.23% of servicers’ portfolio volume in the prior week to 5.20% as of February 28, 2021. According to MBA’s estimate, 2.6 million homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance decreased to 2.94% — a 3-basis-point improvement. Ginnie Mae loans in forbearance decreased 7 basis points to 7.28%, while the forbearance shares for portfolio loans and private-label securities (PLS) increased by 2 basis points to 9.05%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 6 basis points to 5.51%, and the percentage of loans in forbearance for depository servicers decreased 1 basis point to 5.28%. Mike Fratantoni, MBA’s Senior Vice President and Chief Economist in a prepared statement said, “There was a small decline in the total share of loans in forbearance in the last week of February, as the pace of forbearance exits increased. This continues the trend reported in prior months. Of those homeowners in forbearance, more than 12% were current at the end of February, down from the almost 14% at the end of January. The improving economy, the soon-to-be passed stimulus package, and the many homeowners in forbearance reaching the 12-month mark of their plan could all influence the overall forbearance share in the coming months.”