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The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 1 basis point from 8.48 percent of servicers’ portfolio volume in the prior week to 8.47 percent as of June 21, 2020. According to MBA’s estimate, 4.2 million homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the third week in a row to 6.26 percent – a 5-basis-point improvement. The forbearance share for portfolio loans and private-label securities increased by 8 basis points to 10.07 percent. Ginnie Mae loans in forbearance remained unchanged at a share of 11.83 percent. The percentage of loans in forbearance for depository servicers dropped for the second week in a row to 9.09 percent, while the percentage of loans in forbearance for independent mortgage bank (IMB) servicers increased to 8.42 percent.
“The overall share of loans in forbearance declined for the second week in a row, led by the third straight drop in GSE loans,” Mike Fratantoni, MBA’s senior vice president and chief economist, said in a statement. “Many borrowers initially received a three-month forbearance term, and as of June 21, 17 percent of loans in forbearance have now been extended, with the largest share of those being Ginnie Mae loans. The level of forbearance requests remains quite low as of mid-June. The rebound in the housing market is likely one of the factors that is providing confidence to both potential homebuyers and existing homeowners during these troubled times.”
