The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports the total number of loans now in forbearance decreased for the 11th straight week in a row from 5.67% of servicers’ portfolio volume in the prior week to 5.47% as of November 8, 2020 – a 20-basis-point improvement. According to MBA’s estimate, 2.7 million homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance dropped 13 basis points to 3.36%. Ginnie Mae loans in forbearance decreased 25 basis points to 7.70%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased by 32 basis points to 8.38%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 25 basis points to 5.94%, and the percentage of loans in forbearance for depository servicers decreased 17 basis points from the previous week to 5.43%. Mike Fratantoni, MBA’s Senior Vice President and Chief Economist in a prepared statement said, “Declines in the share of loans in forbearance continued this week, with a significant increase in the rate of forbearance exits – particularly for portfolio and PLS loans. More than 76% of borrowers in forbearance are now in an extension, as we are well past the six-month point for most borrowers’ forbearance plans.”
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Share of Mortgage Loans in Forbearance Decreases to 5.47 Percent