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Adam DeSanctis
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WASHINGTON, D.C. (July 12, 2021)– The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 11 basis points from 3.87% of servicers’ portfolio volume in the prior week to 3.76% as of July 4, 2021. According to MBA’s estimate, 1.9 million homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 8 basis points to 1.91%. Ginnie Mae loans in forbearance decreased 32 basis points to 4.78%, while the forbearance share for portfolio loans and private-label securities (PLS) increased 2 basis points to 7.94%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 13 basis points to 3.87%, and the percentage of loans in forbearance for depository servicers also decreased 13 basis points to 3.98%.
“Forbearance exits increased in the week of the July 4th holiday to the fastest pace since early April,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “New requests stayed very low, resulting in a large drop in the share of loans in forbearance, particularly for Ginnie Mae loans, which also continue to be impacted by buyouts of delinquent loans. These loans are tracked as portfolio loans after a buyout.”
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