by Calculated Risk on 9/07/2021 04:00:00 PM
Note: This is as of August 29th.
Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance
decreased by 2 basis points from 3.25% of servicers’ portfolio volume in the prior week to 3.23% as of
August 29, 2021. According to MBA’s estimate, 1.6 million homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 3 basis points to 1.63%.
Ginnie Mae loans in forbearance decreased 29 basis points to 3.63%, while the forbearance share for
portfolio loans and private-label securities (PLS) increased 34 basis points to 7.52%. The percentage of
loans in forbearance for independent mortgage bank (IMB) servicers decreased 1 basis point to 3.49%,
and the percentage of loans in forbearance for depository servicers decreased 2 basis points to 3.33%.
“The share of loans in forbearance decreased by two basis points last week, with both new requests and
exits remaining at a slow pace as we reached the end of August,” said Mike Fratantoni, MBA’s Senior
Vice President and Chief Economist. “There was another large shift in the location of many FHA and VA
loans, which have been bought out of Ginnie Mae pools and moved onto servicer balance sheets. As a
result, there was a sharp drop in the share of Ginnie Mae loans in forbearance, and an offsetting
increase in the share of portfolio loans in forbearance. These buyouts enable servicers to stop advancing
principal and interest payments, and work with borrowers to begin paying again before they are resecuritized into Ginnie Mae pools.”
This graph shows the percent of portfolio in forbearance by investor type over time. Most of the increase was in late March and early April 2020, and has trended down since then.
The MBA notes: “Total weekly forbearance requests as a percent of servicing portfolio volume (#) decreased relative to the prior week: from 0.05% to 0.04%.”