MBA Reports Forbearance Rate Jumps To 5.9%

Apr 20, 2020

Forbearance agreement | iStock Photo by designer491

Senior Editor

The latest figures from the Mortgage Bankers Association shows total loans in forbearance has risen to 5.95%. That’s up from the previous week when the number stood at 3.74%, according to the group’s latest Forbearance and Call Volume Survey.

Mortgages backed by Ginnie Mae showed the largest growth (2.37%) from the prior week and the largest overall share in forbearance by investor type at 8.26%. Depository servicers–at 6.57%–surpassed independent mortgage bank servicers (5.69%) for the highest share of loans in forbearance. Meanwhile, the share of Fannie Mae and Freddie Mac loans in forbearance increased relative to the prior week, from 2.44% to 4.64%.

“With over 22 million Americans filing for unemployment over the past month, homeowners are contacting their mortgage servicers seeking relief, leading to a sharp increase in the share of loans in forbearance across all loan types,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “Mortgage servicers continue to receive a very high level of forbearance requests, but volumes were down somewhat compared to the prior week.”

The survey covered the week of April 6-12.

“Given that lockdowns and associated job losses will continue in the coming weeks, forbearance inquiries will likely rise again as we approach May payment due dates. Borrowers facing COVID-19-related hardships should contact their servicer to review all of their options,” Fratantoni added.

Forbearance requests as a percent of servicing portfolio volume (#) dropped relative to the prior week: from 2.43% to 1.79%.

In terms of weekly servicer call center volume, as a percentage of servicing portfolio volume, calls dropped from 14.4% to 8.8%, while hold times decreased from 10.3 minutes to 4.9 minutes. Client abandonment rates declined from 17.0% to 9.7%, and the average call length rose from 7.5 minutes to 7.6 minutes.

About the author

Keith Griffin

Senior Editor

Keith Griffin is a senior editor at NMP.

Link copied

Published

Apr 20, 2020

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

The September jobs report gave the mortgage market something it hasn't had much of lately: downward pressure on Treasury yields.U.S. employers added just 29,000 jobs in September, while the unemployment rate edged up to 4.2%, according to the Bureau of Labor Statistics. The ...

Wholesale

The Loan Store Rebrands As Averra Financial

The wholesale lender is adopting a new identity three years after acquiring Homepoint’s wholesale business and rising to No. 4 in industry rankings

The Loan Store has a new name after a three-year expansion that transformed the once-small wholesale lender into one of the largest players in the broker channel.The Tucson, Arizona-based lender has rebranded as Averra Financial Inc., effective immediately, the company annou...

Nov

Houston, TX

More from

Analysis and Data

Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Analysis and Data

Oct 02, 2026

Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Analysis and Data

Oct 01, 2026

Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Analysis and Data

Sep 29, 2026

Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Analysis and Data

Sep 25, 2026

Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Analysis and Data

Sep 25, 2026

Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Tech

Sep 23, 2026

Popular