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MBA Survey: "Share of Mortgage Loans in Forbearance Slightly Decreases to 3.47%"

by Calculated Risk on 8/02/2021 04:00:00 PM

Note: This is as of July 25th.

From the MBA: Share of Mortgage Loans in Forbearance Slightly Decreases to 3.47%

The Mortgage Bankers Association’s (MBA) latest Forbearance
and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 1
basis point from 3.48% of servicers’ portfolio volume in the prior week to 3.47% as of July 25, 2021.
According to MBA’s estimate, 1.74 million homeowners are in forbearance plans
.

The share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 1.79%.
Ginnie Mae loans in forbearance decreased 5 basis points to 4.30%, while the forbearance share for
portfolio loans and private-label securities (PLS) increased 6 basis points to 7.44%. The percentage of
loans in forbearance for independent mortgage bank (IMB) servicers decreased 1 basis point to 3.67%,
and the percentage of loans in forbearance for depository servicers decreased 2 basis points to 3.59%.

“Forbearance exits remained low, and there was another increase in new forbearance requests,
particularly for Ginnie Mae and portfolio and PLS loans. The net result was another slight decline in the
share of loans in forbearance,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “While the overall number of loans in forbearance has changed little in recent weeks, forbearance re-entries have increased, reaching 7.2% this week. Recent economic data continue to show improvement,
but it’s clear many homeowners in forbearance still need the relief that is being provided.”

emphasis added

MBA Forbearance Survey 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 2020, and has trended down since then.

The MBA notes: “Total weekly forbearance requests as a percent of servicing portfolio volume (#) increased relative to the prior week: from 0.04% to 0.06%.”

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