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The Mortgage Bankers Association's Forbearance and Call Volume Survey shows an eighth consecutive drop in the share of mortgage loans in forbearance. The total dropped by 23 basis points down to 7.44%. The MBA estimates 3.7 million homeowners are in forbearance plans.
"The share of loans in forbearance declined at a more rapid pace last week, with many borrowers who had been making payments while in forbearance deciding to exit. New forbearance requests increased, but are still well below the level of exits," said Mike Fratantoni, Mortgage Bankers Association senior vice president and chief economist. "Some of the decline in the share of Ginnie Mae loans in forbearance was due to additional buyouts of delinquent loans from Ginnie Mae pools, which result in these FHA and VA loans being reported in the portfolio category."
"The job market data in July came in better than expected. However, the unemployment rate is still quite high, and the elevated level of layoffs and slowing pace of hiring will make it more difficult for borrowers to get back on track - particularly if there is not an extension of relief," Fratantoni added.
Fannie Mae and Freddie Mac's share of loans in forbearance dipped for the ninth straight week to 5.19%, Ginnie Mae loans in forbearance dropped to 10.06% and the share of private-label securities also decreased to 10.12%, according to the MBA.
Read more from the MBA's Forbearance and Call Volume Survey.