The total number of loans now in forbearance decreased by 7 basis points from 3.47% of servicers’ portfolio volume in the prior week to 3.40% as of Aug. 1, 2021, according to the Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey. The MBA estimates there are 1.7 million homeowners who are currently in forbearance plans.
– Fannie Mae and Freddie Mac loans in forbearance decreased 5 basis points to 1.74%
– Ginnie Mae loans in forbearance decreased 12 basis points to 4.18%
– Portfolio loans and private-label securities (PLS) decreased 7 basis points to 7.37%
– Independent mortgage bank (IMB) servicers decreased 4 basis points to 3.63%
– Loans in forbearance for depository servicers decreased 10 basis points to 3.49%
“Forbearance exits increased as August began and new forbearance requests declined, resulting in the largest decrease in the share of loans in forbearance in three weeks,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “1.7 million homeowners remain in forbearance, 13% of whom were current on their payments as of August 1. Of those who exited forbearance last week, more than 10.5% were current. Forbearance has surely provided both insurance and assurance for many of these homeowners who worried about ongoing hardships, and it is positive to see so many continue to be able to make their payments while in forbearance.”
Added Fratantoni, “Delinquency rates have increased slightly for borrowers who have exited forbearance and began repayment plans, deferral plans, or modifications over the course of the pandemic. However, July’s strong job market report provides evidence of a rebounding economy, which should provide further support for homeowners exiting forbearance in the months ahead.”