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The Mortgage Bankers Association's Forbearance and Call Volume Survey reported that the total number of loans now in forbearance decreased to 6.87% from 6.93% the previous week. The MBA estimates 3.4 million homeowners are in forbearance plans.
The Fannie Mae and Freddie Mac share of loans in forbearance dipped for the 16th week in a row to 4.46%, according to the report. The Ginnie Mae share remained stagnant at 9.15% and the share of portfolio loans and private-label securities also remained stagnant at 10.52%. Additionally, the percentage of loans in forbearance for depository servicers fell to 7.11% and the percentage of loans in forbearance for independent mortgage bank servicers fell to 7.23%, according to the report.
"The share of loans in forbearance continues to decline and is now at a level not seen since mid-April. Many homeowners with GSE loans are exiting forbearance into a deferral plan and resuming their original mortgage payment, but waiting to pay the forborne amount until the end of the loan," said Mike Fratantoni, MBA's senior vice president and chief economist. "However, the overall picture is still somewhat of a mixed bag. The recent uptick in forbearance requests, particularly for those with FHA or VA loans, is leaving the Ginnie Mae share elevated, as the pace of new requests meets or exceeds the pace of exits. The continued churn in the job market is likely keeping many homeowners who have been in forbearance reluctant to exit, given the level of economic uncertainty."
Call volume increased from 6.9% to 8.3% with the average speed to answer down to three minutes, from 3.5 minutes the previous week.
Click here to read more from the MBA's Forbearance and Call Volume Survey.