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Adam DeSanctis
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WASHINGTON, D.C. (December 21, 2020) – The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance increased slightly from 5.48% of servicers’ portfolio volume in the prior week to 5.49% as of December 13, 2020. According to MBA’s estimate, 2.7 million homeowners are in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance decreased to 3.25% – a 1-basis-point improvement. Ginnie Mae loans in forbearance increased 11 basis points to 7.79%, while the forbearance share for portfolio loans and private-label securities (PLS) decreased by 13 basis points to 8.76%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 3 basis points from the previous week to 5.95%, and the percentage of loans in forbearance for depository servicers increased 3 basis points from the previous week to 5.41%.

“The share of loans in forbearance has stayed fairly level since early November, often with small decreases in the GSE loan share and increases for Ginnie Mae loans. That was the case last week. Additionally, forbearance requests from Ginnie Mae borrowers reached the highest level since the week ending June 14,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Additional restrictions on businesses and rising COVID-19 cases are causing a renewed increase in layoffs and other signs of slowing economic activity. These troubling trends will likely result in more homeowners seeking relief.”

Key findings of MBA’s Forbearance and Call Volume Survey – December 7 to December 13, 2020

• Total loans in forbearance increased 1 basis point relative to the prior week: from 5.48% to 5.49%.
  • By investor type, the share of Ginnie Mae loans in forbearance increased relative to the prior week: from 7.68% to 7.79%.
  • The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative to the prior week: from 3.26% to 3.25%.
  • The share of other loans (e.g., portfolio and PLS loans) in forbearance decreased relative to the prior week: from 8.89% to 8.76%.