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The total share of mortgage loans in forbearance fell to 4.5%, decreasing 16 basis points compared to the week prior, according to Mortgage Banker Association’s Forbearance and Call Volume Survey.
The Fannie Mae and Freddie Mac loans in forbearance decreased 8 basis points to 2.44%, and Ginnie Mae loans in forbearance decreased 17 basis points to 6.16%. Portfolio Loan for private-label securities (PLS) had their total number of loans in forbearance decrease 31 basis points to 8.34%. For independent mortgage bank (IMB) servicers, loan forbearance decreased 17 basis points to 4.72%, according to a press release.
MBA’s Forbearance and call Volume Survey also reported that by stage, 13.1% of total loans in forbearance are in the initial forbearance plan stage, while 82.1% are in a forbearance extension. The remaining 4.8% are forbearance re-entries. In all, 2.3 million homeowners are in forbearance plans.
"The share of loans in forbearance decreased for the seventh straight week and has now dropped 40 basis points in the last two weeks," said MBA's senior vice president and chief economist, Mike Fratantoni.
The cumulative forbearance exits from June 1, 2020 through April 11, 2021, shows 26.7% resulted in a loan deferral/partial claim. Nearly 26% represented borrowers who continued to make their monthly payments during their forbearance period, 14.6% represented borrowers who did not make all of their monthly payments and exited forbearance without a loss mitigation plan in place yet, and 14.5% resulted in reinstatements, in which past-due amounts are paid back when exiting forbearance.
"Economic data on home construction and consumer spending in March show a strong housing market and a quickened pace of economic activity," added Fratantoni. "Combined with the homeowner assistance and stimulus payments that many households are receiving, we expect that the forbearance numbers will continue to decline in the months ahead as more individuals regain employment."