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MBA Survey: "Share of Mortgage Loans in Forbearance Slightly Decreases to 3.48%"


by Calculated Risk on 7/26/2021 04:00:00 PM

Note: This is as of July 18th.

From the MBA: Share of Mortgage Loans in Forbearance Slightly Decreases to 3.48%

The Mortgage Bankers Association’s (MBA) latest Forbearance
and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 2
basis points from 3.50% of servicers’ portfolio volume in the prior week to 3.48% as of July 18, 2021. According to MBA’s estimate, 1.74 million homeowners are in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 1.81%.
Ginnie Mae loans in forbearance decreased 1 basis point to 4.35%, while the forbearance share for
portfolio loans and private-label securities (PLS) increased 5 basis points to 7.38%. The percentage of
loans in forbearance for independent mortgage bank (IMB) servicers remained the same relative to the
prior week at 3.68%, and the percentage of loans in forbearance for depository servicers decreased 1
basis point to 3.61%.

“As is typical for mid-month reporting, forbearance exits slowed, and there was a slight increase in new
requests. The net result was a small drop in the share of loans in forbearance – the 21
st consecutive
week of declines,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “The
forbearance share decreased for GSE and Ginnie Mae loans, but increased for portfolio and PLS loans, as
new forbearance requests increased for this category.”
emphasis added

Click on graph for larger image.

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 (#) increased
relative to the prior week: from 0.03% to 0.04%”

Housing Inventory July 26th Update: Inventory Increased 3% Week-over-week, Up 31% from Low in early April

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