by Calculated Risk on 7/19/2021 04:00:00 PM
Note: This is as of July 11th.
and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 26
basis points from 3.76% of servicers’ portfolio volume in the prior week to 3.50% as of July 11, 2021.
According to MBA’s estimate, 1.75 million homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 8 basis points to 1.83%.
Ginnie Mae loans in forbearance decreased 42 basis points to 4.36%, while the forbearance share for
portfolio loans and private-label securities (PLS) decreased 61 basis points to 7.33%. The percentage of
loans in forbearance for independent mortgage bank (IMB) servicers decreased 19 basis points to 3.68%,
and the percentage of loans in forbearance for depository servicers decreased 36 basis points to 3.62%.
“Forbearance exits edged up again last week and new forbearance requests dropped to their lowest
level since last March, leading to the largest weekly drop in the forbearance share since last October and
the 20th consecutive week of declines,” said Mike Fratantoni, MBA’s Senior Vice President and Chief
Economist. “The forbearance share decreased for every investor and servicer category.”
Added Fratantoni, “The latest economic data regarding the job market and consumer spending continue
to show a robust pace of economic recovery, which is supporting further improvements in the
forbearance numbers as more homeowners are able to resume their payments.”
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 0.04% to 0.03% – the lowest level reported since the week
ending March 15, 2020.”