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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.