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4.2 Million U.S. Homeowners in Mortgage Forbearance in June

4.2 Million U.S. Homeowners in Mortgage Forbearance in June


Based on the Mortgage Bankers Association's latest Forbearance and Call Volume Survey, the total number of U.S. loans now in forbearance decreased by 1 basis point from 8.48% of servicers' portfolio volume in the prior week to 8.47% 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 t6.26% - a 5-basis-point improvement. The forbearance share for portfoliloans and private-label securities (PLS) increased by 8 basis points t10.07%. Ginnie Mae loans in forbearance remained unchanged at a share of 11.83%. The percentage of loans in forbearance for depository servicers dropped for the second week in a row t9.09%, while the percentage of loans in forbearance for independent mortgage bank (IMB) servicers increased t8.42%.

"The overall share of loans in forbearance declined for the second week in a row, led by the third straight drop in GSE loans," said Mike Fratantoni, MBA's Senior Vice President and Chief Economist. "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."
 
Added Fratantoni, "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 tboth potential homebuyers and existing homeowners during these troubled times."

Key Report Findings Include:

  • Total loans in forbearance decreased by 1 basis point relative tthe prior week: from 8.48% t8.47%.
  • By investor type, the share of Ginnie Mae loans in forbearance remained flat relative tthe prior three weeks at 11.83%.
  • The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative tthe prior week: from 6.31% t6.26%.
  • The share of other loans (e.g., portfoliand PLS loans) in forbearance increased relative tthe prior week: from 9.99% t10.07%.
  • Forbearance requests as a percent of servicing portfolivolume (#) decreased across all investor types: from 0.15% t0.14%.
  • Weekly servicer call center volume:
  • As a percent of servicing portfolivolume (#), calls increased from 7.7% t7.8%. Average speed tanswer increased relative tthe prior week from 1.5 minutes t1.8 minutes.
  • Abandonment rates increased from 4.6% t5.5%. Average call length decreased from 7.1 minutes t7.0 minutes.
  • Loans in forbearance as a share of servicing portfolivolume (#) as of June 21, 2020:
  • Total: 8.47% (previous week: 8.48%) IMBs: 8.42% (previous week: 8.40%)
  • Depositories: 9.09% (previous week: 9.15%)


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