Based on the Mortgage Bankers Association's latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 14 basis points from 3.40% of servicers' portfolio volume in the prior week to 3.26% as of August 8, 2021. According to MBA's estimate, 1.6 million homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 5 basis points to 1.69%. Ginnie Mae loans in forbearance decreased 23 basis points to 3.95%, while the forbearance share for portfolio loans and private-label securities (PLS) decreased 32 basis points to 7.05%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 17 basis points to 3.46%, and the percentage of loans in forbearance for depository servicers decreased 13 basis points to 3.36%.
"The largest decrease in a month in the share of loans in forbearance came from a jump in forbearance exits, as many homeowners are nearing the end of their forbearance terms. The forbearance share declined for all investor and servicer categories," said Mike Fratantoni, MBA's Senior Vice President and Chief Economist. "New forbearance requests picked up slightly this week, particularly for Ginnie Mae loans, but overall trends remain positive. Incoming data continues to support our forecast of an improving job market in the months ahead."
Key findings of MBA's Forbearance and Call Volume Survey