Forbearances Retreat To 4.2 Percent – NMP Skip to main content

Forbearances Retreat To 4.2 Percent

Navi Persaud
May 18, 2021
forbearance loans

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.

Published
May 18, 2021
Redfin 2Q Revenues Up, Profits Down

Company officials said that in the third quarter they expect total revenue between $590 million and $627 million.

Industry News
Aug 05, 2022
Mutual of Omaha Mortgage Announces Wholesale Division

Loans available through its own platform and in partnership with ReadyPrice, LenderPrice, and Loansifter.

Industry News
Aug 05, 2022
MISMO Seeks Public Comment On 3 eMortgage Resources

Updates proposed to MISMO Business Glossary, eMortgage Glossary, and eModification Reference Flyer.

Regulation and Compliance
Aug 05, 2022
Deal With Opendoor Allows Zillow Back Into iBuying Business

As it releases rough 2Q earnings report, Zillow announces partnership with former rival.

Tech
Aug 04, 2022
Rocket Companies' Earnings Plunge 94% In 2Q

Mortgage originations fell 59% year over year, while rate lock volume fell 65%.

Industry News
Aug 04, 2022
Remembering Steven Schnall, Quontic Bank CEO

Schnall died in a motorcycle accident while on his way back from a biking trip to Canada. 

Industry News
Aug 04, 2022