From the MBA: Share of Mortgage Loans in Forbearance Declines to 5.29%
The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 6 basis points from 5.35% of servicers’ portfolio volume in the prior week to 5.29% as of February 7, 2021. According to MBA’s estimate, 2.6 million homeowners are in forbearance plans.
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“The share of loans in forbearance declined to the lowest level since April 5th of last year, due to decreases in both the GSE and Ginnie Mae portfolios,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Similar to the trend in recent months, the first week of February showed a faster pace of exits from forbearance compared to recent weeks, while new forbearance requests were unchanged.”Fratantoni added, “2.6 million homeowners remain in forbearance plans. MBA expects the rollout of the vaccines to boost economic growth through the course of the year, leading to a stronger job market and a greater ability for more struggling homeowners to get back on their feet. We do believe that additional support is needed until they have regained their jobs and incomes.”
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• Total loans in forbearance decreased by 6 basis points relative to the prior week: from 5.35% to 5.29%.• By investor type, the share of Ginnie Mae loans in forbearance decreased relative to the prior week: from 7.46% to 7.34%.
• The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative to the prior week: from 3.07% to 3.01%.
• The share of other loans (e.g., portfolio and PLS loans) in forbearance remained unchanged relative to the prior week at 9.14%.emphasis added
Click on graph for larger image.
This graph shows the percent of portfolio in forbearance by investor type over time. Most of the increase was in late March and early April, then trended down – and has mostly moved slowly down recently.
The MBA notes: “Total weekly forbearance requests as a percent of servicing portfolio volume (#) remained unchanged relative to the prior week at 0.07%”