Share Of Mortgage Loans In Forbearance Dips For The Ninth Consecutive Week
The Mortgage Bankers Association's Forbearance and Call Volume Survey reported that the total number of loans now in forbearance decreased from 4.49% of servicers' portfolio volume in the prior week to 4.47% as of April 25, 2021. The MBA's estimate 2.23 million homeowners are currently in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased to 2.42%, Ginnie Mae loans in forbearance decreased 6.02%, while the forbearance share for portfolio loans and private-label securities (PLS) increased to 8.55%, according to the report.
The percentage of loans in forbearance for independent mortgage bank servicers decreased to 4.70%, and the percentage of loans in forbearance for depository servicers declined to 4.62%.
"The share of loans in forbearance decreased for the ninth straight week, dropping by 2 basis points. The rate of exits has slowed the past two weeks, with this week's exit rate reaching the lowest since February," said Mike Fratantoni, MBA's senior vice president and chief economist. "The increase in the forbearance share for portfolio and PLS loans highlights both the ongoing buyouts of delinquent loans from Ginnie Mae pools as well as an increased forbearance share for other loans that are not federally backed."
"Job market and housing market data remain strong. We expect that further gains in hiring will help to support many homeowners as they exit forbearance in the months ahead," added Fratantoni.
Click here to read more from the MBA's latest Forbearance and Call Volume Survey.
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