Based on the Mortgage Bankers Association's latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance in the U.S. remained unchanged relative to the prior week at 3.25% as of August 22, 2021. The MBA estimates there are currently 1.6 million homeowners in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance remained the same relative to the prior week at 1.66%. Ginnie Mae loans in forbearance also remained the same at 3.92%, while the forbearance share for portfolio loans and private-label securities (PLS) increased 3 basis points to 7.18%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers increased 2 basis points to 3.50%, and the percentage of loans in forbearance for depository servicers was unchanged at 3.35%.
"The share of loans in forbearance changed little once again this week, as both new requests and exits remained at a slow pace," said Mike Fratantoni, MBA's Senior Vice President and Chief Economist. "We expect a sharp increase in forbearance exits over the next month as many borrowers reach the 18- month mark and see their forbearance plans end. For those borrowers who have exited in August, the majority either enter deferral plans or obtain modifications."