The total number of loans now in forbearance decreased by 9 basis points to 2.06% for the week ending Oct. 31, 2021. The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey estimates there are 1 million homeowners who are in forbearance plans.
Key details:
- The share of Fannie Mae and Freddie Mac loans in forbearance decreased 5 basis points to 0.92%
- Ginnie Mae loans in forbearance decreased 13 basis points to 2.52%
- Portfolio loans and private-label securities (PLS) declined 13 basis points to 5.00%
- Independent mortgage bank (IMB) servicers decreased 15 basis points to 2.28%
- Loans in forbearance for depository servicers decreased 5 basis points to 2.02%
The takeaway:
“One million homeowners remained in forbearance as we reached the end of October, but the forbearance share continued to decline, with larger declines for portfolio and PLS loans,” said Mike Fratantoni, MBA’s senior vice president and chief economist, in a statement. “More borrowers who exited forbearance the last week of October went into modifications, a sign that they have not yet regained their pre-pandemic level of income.”
“The strong job market report from October, with another drop in the unemployment rate and a pickup in wage growth, is a positive sign for homeowners still struggling to get back on their feet,” he added.
