Skip to main content

Forbearance Volume Continues To Climb

NationalMortgageProfessional.com
May 11, 2020
Photo credit: Getty Images/Nuthawut Somsuk

The number of loans in a state of forbearance is on the rise. The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey shows an increase from 7.54% of servicers’ portfolio volume last week to 7.91% as of May 3, 2020. The MBA estimates nearly four million homeowners are now in forbearance plans. In comparison, only 0.25% of all loans in the U.S. were in forbearance for the week of March 2.
 
Leading the pack again were mortgages backed by Ginnie Mae, which had the largest overall share of loans in forbearance by investor type at 10.96%. The share of GSE loans in forbearance increased relative to the prior week, from 5.85% to 6.08%. The number of loans in forbearance for depository servicers rose to 8.75%, while the number of loans in forbearance for independent mortgage bank servicers increased to 7.54%.
 
“With the calendar turning to May, the share of loans in forbearance increased, but the pace of the increase and incoming forbearance requests continued to slow,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “The dreadful April jobs report showed a decline of more than 20 million jobs, and a spike in the unemployment rate to the highest level since the Great Depression. It will not be surprising if the forbearance numbers continue to rise. As we anticipated, FHA and VA borrowers have been most impacted by the job losses thus far, with the share of Ginnie Mae loans in forbearance at almost 11 percent.”
 
Weekly servicer call center volume was up, as the percentage of servicing portfolio volume, calls increased from 7.2% to 8.6%. The average speed to answer increased relative to the prior week, from 2.4 minutes to 2.6 minutes, while the average call length increased from 6.9 minutes to 7.4 minutes.
 
“Although the pace of forbearance requests slowed this week, call volume picked up,” noted Fratantoni, “which could be a sign that more borrowers are calling in to check their options now that May due dates have arrived.”

 
Published
May 11, 2020
Sagent Appoints Thompson As Chief Product Officer

Founder of fintech managment consulting firm Consigliera will lead and expand product development.

Industry News
Jan 20, 2022
Total Expert Appoints Gaydos As President

Former Talkdesk and SAP senior executive brings extensive cloud, go-to-market, sales, and operations experience.

Industry News
Jan 20, 2022
400 Mortgage Loan Originators Caught Trying To Skip School

400 mortgage loan originators nationwide deceptively claimed to have completed their annual continuing education as required by state and federal law.

Industry News
Jan 19, 2022
Infamous Better.com CEO Is Back And Employees Are Upset

After a month-long hiatus or “break” as Garg likes to call it, the CEO is back at the helm of the company.

Industry News
Jan 19, 2022
Capacity Closes $38M In Series C Funding, Surpasses $62M In Total Capital Raised

AI-powered automation platform, Capacity, announced an additional $27 million in Series C funding, closing out the round at more than $38 million.

Tech
Jan 19, 2022
Millennials Are Still Powering The Housing Market

First American Financial Corporation's Potential Home Sales Model for Dec. 2021 revealed that millennial demand is propelling the housing market, thanks to low rates and increased geographic flexibility.

Analysis and Data
Jan 19, 2022