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.”

 
Ocwen Financial To Acquire Reverse Mortgage Servicing Platform

Ocwen Financial Corporation's wholly-owned subsidiary, PHH Mortgage Corporation will acquire RMS' reverse mortgage servicing platform.

Industry News
Jun 18, 2021
UniteCT Emergency Rental Assistance Succeeds

Thanks to the successful launch of the UniteCT program, emergency rental assistance funds are helping Connecticut residents maintain housing.

Industry News
Jun 17, 2021
Angel Oak Mortgage Announces Initial Public Offering

Angel Oak Mortgage announced its initial public offering of 7,200,000 shares of its common stock at $19 per share.

Industry News
Jun 17, 2021
Mortgage Apps Rebound After Three Consecutive Weeks Of Declines

The Mortgage Bankers Association reported the first increase in mortgage applications after a three consecutive weeks on declines.

Industry News
Jun 17, 2021
CFPB New Rule Prevents Predatory Lending To Military Service Members

The CFPB stipulates its authority to examine supervised financial institutions for risk to active duty servicemembers and their dependents.

Industry News
Jun 16, 2021
Inventory Begins A Slow Recovery

Inventory grew 3.9% from April to May, according to Zillow's latest Market Report, after a year of steady decline.

Industry News
Jun 16, 2021