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The Mortgage Bankers Association's latest Forbearance and Call Volume Survey reported that the total number of loans now in forbearance decreased by 14 basis points from 4.36% of servicers' portfolio volume in the prior week to 4.22% as of May 9, 2021. The MBA estimates that there are 2.1 million homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased to 2.24%. Ginnie Mae loans in forbearance decreased to 5.61%, while the forbearance share for portfolio loans and private-label securities decreased to 8.26%. The percentage of loans in forbearance for independent mortgage bank servicers decreased to 4.42%, and the percentage of loans in forbearance for depository servicers declined to 4.35%.
"More homeowners exited forbearance in the first full week of May, leading to a 14-basis-point decrease in the forbearance share - the 11th straight week of declines. The rate of new requests dropped to 4 basis points, which is the lowest level since last March," said Mike Fratantoni, MBA's senior vice president and chief economist. "Of those in forbearance extensions, more than half have been in forbearance for more than 12 months."
"The opening of the economy, as the successful vaccination effort continues, should lead to further reductions in the forbearance share. However, many homeowners continue to struggle. Borrowers who are reaching the end of their forbearance term should reach out to their servicer to review their options," added Fratantoni.
Click here to read more findings from the report.