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 3.48% of servicers’ portfolio volume in the prior week to 3.47% as of July 25, 2021. According to MBA’s estimate, 1.74 million homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 1.79%. Ginnie Mae loans in forbearance decreased 5 basis points to 4.30%, while the forbearance shares for portfolio loans and private-label securities (PLS) increased 6 basis points to 7.44%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 1 basis point to 3.67%, and the percentage of loans in forbearance for depository servicers decreased 2 basis points to 3.59%.
In remarks prepared for the release of this week’s forbearance survey, Mike Fratantoni, MBA’s Senior Vice President and Chief Economist said, “Forbearance exits remained low, and there was another increase in new forbearance requests, particularly for Ginnie Mae and portfolio and PLS loans. The net result was another slight decline in the share of loans in forbearance. While the overall number of loans in forbearance has changed little in recent weeks, forbearance re-entries have increased, reaching 7.2% this week. Recent economic data continue to show improvement, but it’s clear many homeowners in forbearance still need the relief that is being provided.”
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