Share Of Loans In Forbearance Begins To Decline
June 22, 2020
This week’s Forbearance and Call Volume Survey from the Mortgage Bankers Association (MBA) found the total number of loans in forbearance decreased for the first time since the survey began in March, from 8.55% of servicers’ portfolio volume in the prior week, to 8.48%.
MBA estimates that 4.2 million homeowners are now in forbearance plans, down from almost 4.3 million homeowners the prior week.
The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the second consecutive week, from 6.38% to 6.31%, while the share of Ginnie Mae loans in forbearance remained flat at 11.83%.
The share of other loans (portfolio and PLS loans) in forbearance decreased relative to the prior week: from 10.18% to 9.99%. The percentage of loans in forbearance for depository servicers dropped to 9.15%, and the percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased to 8.40%.
“The lower share of loans in forbearance was led by declines in GSE and portfolio and PLS loans, as more of those borrowers exited than entered a new forbearance plan,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “Fewer homeowners in forbearance underscores the continued improvements in the job market, and provides another sign of the fundamental health of the housing market, which has rebounded considerably over the past several weeks.”
The study also delved into weekly servicer call center volume, as a percentage of servicing portfolio volume calls decreased from 8.0% to 7.7%. The average speed to answer decreased relative to the prior week from 1.8 minutes to 1.5 minutes, and the average call length was unchanged at 7.1 minutes.
MBA’s latest Forbearance and Call Volume Survey covers the period from June 8-14, 2020, representing 76% of the first-mortgage servicing market (38.2 million loans).
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