Skip to main content

Mortgage Loans In Forbearance Tick Up Slightly

Navi Persaud
Nov 24, 2020
Employee working on the phone.

The Mortgage Banker Association's Forbearance and Call Volume Survey reported a minimal increase of 5.47% to 5.48% in the share of loans now in forbearance. The MBA estimates that a total of 2.7 million homeowners are currently in forbearance plans.

The report stated that the number of Fannie Mae and Freddie Mac loans in forbearance dropped for the 24th consecutive week to 3.35%. Ginnie Mae loans in forbearance increased to 7.73% and the share of private-label securities increased to 8.48%, according to the report. The MBA's report added that the percentage of loans in forbearance for independent mortgage bank servicers remained stagnant at 5.94%.

"A marked slowdown in forbearance exits, as well as a slight rise in the share of Ginnie Mae, portfolio, and PLS loans in forbearance, led to an overall increase for the first time since early June. The decline in exits in the prior week follows a flurry of them last month, when many borrowers reached the six-month point in their forbearance terms," said Mike Fratantoni, MBA's senior vice president and chief economist. "The share of GSE loans in forbearance continued its downward trend and have now declined every week for six straight months."

"Incoming housing market data remain quite strong, with existing-home sales in October reaching their fastest pace since 2005, and the inventory of homes on the market hitting a record low. However, renewed weakness in the latest job market data indicate that many homeowners are continuing to experience severe hardships due to the pandemic and still need the support that forbearance provides," added Fratantoni.

As for servicer call center volume, the report showed no change in the servicing portfolio volume, the average speed to answer decreased from 2.4 minutes to 2.3, abandonment rates are down from 6.3% to 5.4% and average call length decreased slight from 8 minutes to 7.8 minutes.

Click here to read the full report.

Published
Nov 24, 2020
Rocket Pro Announces Major Initiatives

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021
FormFree Taps Amazon Web Services For Consumer Financial Identity Solutions

FormFree will use Amazon's blockchain technology to manage its latest consumer Financial DNA solution and its newly introduced FormFree Exchange.

Tech
Oct 19, 2021
Synergy One Lending Increases Its Capital By $50M

San Diego-based Synergy One Lending Inc. completed a $50 million corporate note financing with a consortium of institutional investors.

Industry News
Oct 19, 2021
TransUnion Sees Untapped Growth Opportunity For The Mortgage Industry

A study conducted by TransUnion, which explores the creditworthiness of low-to-moderate income consumers, revealed that the segment represents a $300 billion growth opportunity for the mortgage industry.

Analysis and Data
Oct 19, 2021
Zillow Stock Falls After It Halts Buying Houses To Flip

Zillow’s stock fell nearly 10% Monday after the company announced its Zillow Offers division would stop buying homes.

Industry News
Oct 19, 2021
MBA Swears In New Officers For 2021-22

Kristy Fercho, executive vice president and head of home lending at Wells Fargo, is the new chairman.

Industry News
Oct 18, 2021