Mortgage Loans in Forbearance Dips to 4.18 Percent
According to 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 4.19% of servicers' portfolio volume in the prior week to 4.18% as of May 23, 2021. According to MBA's estimate, 2.1 million homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 2.19%. Ginnie Mae loans in forbearance decreased 4 basis points to 5.55%, while the forbearance share for portfolio loans and private-label securities (PLS) increased 11 basis points to 8.37%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 2 basis points to 4.36%, and the percentage of loans in forbearance for depository servicers declined 1 basis point to 4.34%.
"The share of loans in forbearance slightly declined, dropping by only 1 basis point, due to a slower pace of forbearance exits. This was the 13th straight week of declines," said Mike Fratantoni, MBA's Senior Vice President and Chief Economist. "Forbearance re-entries increased to almost 5.6 percent, as more homeowners who had canceled forbearance needed assistance again. There was also an increase in the share of PLS and portfolio loans in forbearance, while the share for Fannie Mae, Freddie Mac, and Ginnie Mae loans decreased."
Added Fratantoni, "Housing market data continue to paint a picture of strong demand and constrained supply. The resulting rapid growth in home equity will benefit homeowners, whether they choose to retain or sell their properties."
Key findings of MBA's Forbearance and Call Volume Survey: