Skip to main content

Mortgage Loans In Forbearance Decrease For Sixth Consecutive Week

Jul 28, 2020
Photo of a normal suburban house.
Director of Events

The Mortgage Bankers Association's latest Forbearance and Call Volume Survey revealed that the share of loans in forbearance has decreased to 7.74%. This marks the sixth consecutive week where mortgage loans in forbearance saw a decrease. The MBA estimates that there are 3.9 million homeowners in forbearance plans. One mortgage segment saw an increase, though.

"The share of loans in forbearance declined by a smaller amount than in previous weeks, as the pace of borrowers exiting forbearance slowed," said Mike Fratantoni, MBA's senior vice president and chief economist. "Although the [government-sponsored enterprise] portfolio of loans in forbearance should continue to improve, Ginnie Mae's portfolio saw an uptick of both loans in forbearance and borrowers requesting forbearance. The high level of unemployment claims in recent weeks may be playing a role, as weakness would likely impact Ginnie Mae's portfolio first."

The share of Fannie Mae and Freddie Mac loans in forbearance dipped for the seventh consecutive week to 5.49%, Ginnie Mae loans in forbearance increase to 10.27% and the share of portfolio loans and private-label securities increased to 10.53%.

"As a result of large buyouts from Ginnie Mae pools in recent weeks, many FHA and VA loans are now being held as portfolio loans by bank servicers. That is why the share of portfolio loans in forbearance has increased and is now typically at a higher level than that for Ginnie Mae loans," added Fratantoni.

According to the report, loans in forbearance for servicers dropped to 8.06%. Meanwhile, the percentage of loans in forbearance for independent mortgage bank servicers increased to 7.85%.

Click here to view more from the MBA's Forbearance and Call Volume Survey. 

About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
Jul 28, 2020
HUD Freezes Foreclosures On FHA Mortgages In Texas Flood Zone

Kerr County homeowners among hardest hit in disaster that’s claimed more than 100 lives

Jul 09, 2025
Fewer Canadians Hunt For U.S. Property

Largest component of international buyers in U.S. takes more than 25% hit

Jul 08, 2025
Fannie, Freddie Now Allow Lenders To Use VantageScore 4.0

Lenders will keep tri-merge credit scoring model; what this shift means

Fairway Independent Mortgage Corporation Announces Rebranding

Now Fairway Home Mortgage, company also donates $1M to support relief efforts in deadly Texas flooding

Jul 07, 2025
FHFA Chief Officially Calls For Investigation Of Federal Reserve Chairman Powell

Alleges Powell lied in testimony to Congress regarding Fed building renovations, says Fed Chair should be fired

BBB Will Impact Homeowners, Buyers

U.S. House and Senate must agree on certain tax, mortgage insurance premium deductions