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The Mortgage Bankers Association's Forbearance and Call Volume Survey reported that the total number of loans now in forbearance declined for the 12th consecutive week to 4.19%, as of May 16, 2021. The MBA still estimates that there are 2.1 million homeowners who are currently in forbearance plans.
According to the report, the share of Fannie Mae and Freddie Mac loans in forbearance decreased to 2.21%, Ginnie Mae loans in forbearance fell to 5.59% and the forbearance share for portfolio loans and private-label securities remained stagnant at 8.26%. Meanwhile, the percentage of loans in forbearance for independent mortgage bank servicers decreased by 4 basis points to 4.38%, with the percentage of forbearances for depository servicers stagnant at 4.35%.
"The share of loans in forbearance declined for the 12th straight week, dropping by 3 basis points. The decline was smaller than the prior week due to a slower pace of forbearance exits," said Mike Fratantoni, the MBA's senior vice president and chief economist. "Although the overall share is declining, there was another increase in forbearance re-entries. Currently, 5.3% of loans in forbearance are homeowners who had canceled forbearance but needed assistance again. The job market is recovering, but the pace of recovery thus far is slower than we had forecasted. Continued job growth is needed to help more struggling homeowners get back on their feet."
While forbearances are down, the report revealed that weekly service call center volume did increase from 8% to 8.4%, which could mean that folks are looking for an extension on their forbearance plans.
Click here to read more from the MBA's Forbearance and Call Volume Survey.