The Share of Mortgage Loans in Forbearance Drops to 5.92% in Weekending October 11th, 2020

According to the Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey, the total number of loans now in forbearance has decreased by 40 basis points from 6.32% of servicers’ portfolio volume in the prior week, to 5.92% in the week ending October 11th, 2020. According to the MBA’s estimates, 3 million homeowners are in the forbearance plan. The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the 19th week in a row to 3.77% – a 26-basis-point improvement. Ginnie Mae loans in forbearance decreased 13 basis points to 8.14%, while the forbearance share for portfolio loans and private-label securities (PLS) decreased by 120 basis points to 8.86%. The percentage of loans in forbearance for depository servicers decreased 60 basis points to 5.93%, and the percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 32 basis points to 6.33%.