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MBA Survey: "Share of Mortgage Loans in Forbearance Slightly Decreases to 4.16%"

by Calculated Risk on 6/07/2021 04:00:00 PM

Note: This is as of May 30th.

From the MBA: Share of Mortgage Loans in Forbearance Slightly Decreases to 4.18%

The Mortgage Bankers Association’s (MBA) latest Forbearance
and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 2
basis points from 4.18% of servicers’ portfolio volume in the prior week to 4.16% as of May 30, 2021.
According to MBA’s estimate, 2.1 million homeowners are in forbearance plans

The share of Fannie Mae and Freddie Mac loans in forbearance decreased 1 basis point to 2.18%. Ginnie
Mae loans in forbearance decreased 1 basis points to 5.54%, while the forbearance share for portfolio
loans and private-label securities (PLS) decreased 6 basis points to 8.31%. The percentage of loans in
forbearance for independent mortgage bank (IMB) servicers decreased 2 basis points to 4.34%, and the
percentage of loans in forbearance for depository servicers decreased 1 basis point to 4.33%.

“The share of loans in forbearance declined for the 14th straight week, with small drops across most
investor types and all servicer types,” said Mike Fratantoni, MBA’s Senior Vice President and Chief
Economist. “Forbearance exits dropped to 6 basis points, the lowest weekly level since mid-February,
but new forbearance requests, at 4 basis points, matched the recent weekly low from early May.”

Added Fratantoni, “Although the headline employment growth number for May was lower than many
had anticipated, other data show evidence of a strengthening job market. That is good news for
homeowners who have been struggling and are looking for work, as more families can regain their
incomes and start making their mortgage payments again.”
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 (#) decreased relative to the prior week: from 0.05% to 0.04%.”

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