The Share of Mortgage Loans in Forbearance Decreases Modestly in the Week Ending December 6th, 2020

The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased from 5.54% of servicers’ portfolio volume in the prior week to 5.48% as of December 6th, 2020. According to MBA’s estimate, 2.7 million homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance decreased to 3.26 percent – an 8-basis-point improvement. Ginnie Mae loans in forbearance decreased 21 basis points to 7.68%, while the forbearance share for portfolio loans and private-label securities (PLS) increased by 19 basis points to 8.89%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 4 basis points from the previous week to 5.98%, and the percentage of loans in forbearance for depository servicers decreased 10 basis points from the previous week to 5.38%. Mike Fratantoni, MBA’s Senior Vice President and Chief Economist in a prepared statement said, “The share of loans in forbearance decreased in the first week of December. However, more borrowers sought relief, with new forbearance requests reaching their highest level since the week ending August 2, and servicer call volume hitting its highest level since the week ending April 19. Compared to the last two months, more homeowners exiting forbearance are using a modification – a sign that they have not been able to fully get back on their feet, even if they are working again.”