According to MBA's estimate, 3.4 million homeowners are in forbearance plans, the Mortgage Bankers Association's latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 6 basis points from 6.87% of servicers' portfolio volume in the prior week to 6.81% as of September 27, 2020.
The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the 17th week in a row to 4.39% - a 7-basis-point improvement. Ginnie Mae loans in forbearance increased 1 basis point to 9.16%, while the forbearance share for portfolio loans and private-label securities (PLS) decreased by 13 basis points to 10.39%. The percentage of loans in forbearance for depository servicers decreased 8 basis points to 7.03%, and the percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 4 basis points to 7.19%.
"As of the end of September, there continues to be a slow and steady decrease in the share of loans in forbearance - driven by consistent declines in the GSE loan share - and a persistently high amount in the Ginnie Mae portfolio," said Mike Fratantoni, MBA's Senior Vice President and Chief Economist. "The significant churn in the labor market now, more than six months into the pandemic, is still causing financial distress for millions of homeowners. As a result, more than 70 percent of loans in forbearance are now in an extension."