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.

May 18, 2021
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021
Interfirst Mortgage Launches ONE, Backed By Non-Owner Occupied Properties

ONE is a unique product built on a single interest rate with no adjustments and qualifies off the cash flow of the rental property.

Industry News
Jul 16, 2021
Global Digital Lending Market Projected To Reach $27B By 2028

The Global Digital Lending Platform Market was valued at $7.14 billion in 2020 and is projected to reach $27.07 billion by 2028.

Analysis and Data
Jul 14, 2021
FOMC Discusses Raising Interest Rates

Inflationary pressures have finally forced the Federal Open Market Committee (FOMC) to discuss raising interest rates and tapering its bond-buying program.

Analysis and Data
Jul 14, 2021
Fathom Holdings Inc. Creates New Hispanic Division

Fathom Holdings Inc., a technology-driven real estate platform, announced the creation of their Hispanic Division to more adequately serve this fast-growing demographic. 

Industry News
Jul 07, 2021