From the MBA: Share of Mortgage Loans in Forbearance Increases to 8.46%
The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance increased from 8.36% of servicers’ portfolio volume in the prior week to 8.46% as of May 24, 2020. According to MBA’s estimate, just over 4.2 million homeowners are now in forbearance plans.
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“MBA’s survey continues to indicate that fewer homeowners are seeking forbearance as more states across the country reopen their economies and prospects begin to improve. The share of loans in forbearance increased by only 10 basis points over the week of May 24th,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Policy support for households, including expanded unemployment insurance benefits and other transfers, have helped many stay on their feet during this crisis. With 11.82 percent of Ginnie Mae loans currently in forbearance, FHA and VA borrowers are struggling the most.”Added Fratantoni, “Forbearance requests and call volume declined relative to the prior week and led to further declines in wait times and abandonment rates.”
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.
The MBA notes: “Forbearance requests as a percent of servicing portfolio volume (#) dropped across all investor types for the sixth consecutive week relative to the prior week: from 0.28% to 0.20%.”