Skip to main content

Mortgage Forbearances Retreat To Lowest Levels Since Mid-February

Navi Persaud
Jun 08, 2021
Forbearance graphic

The MBA's Forbearance and Call Volume Survey reported another dip in the number of loans in forbearances.

  • The total loans in forbearance dipped slightly to 4.16%.
  • A reported 11.1% of total loans in forbearance were in the initial forbearance stage.
  • More than 27% of forbearance exits from June 1, 2020 to May 30, 2021 resulted in a loan deferral/partial claim.

The Mortgage Bankers Association's latest Forbearance and Call Volume survey reported a slight dip in the total number of loans in forbearance, which now sits at 4.16% of servicers' portfolio volume as of May 30, 2021. 

The share of Fannie Mae and Freddie Mac loans in forbearance fell slightly to 2.18%, the share of Ginnie Mae loans also retreated slightly to 5.54% and the share for portfolio loans and private-label securities decreased to 8.31%, according to the report. 

Meanwhile, the percentage of loans in forbearance for independent mortgage bank servicers retreated to 4.34% and the percentage of loans in forbearance for depository servicers fell to 4.33%. 

“The share of loans in forbearance declined for the 14th straight week, with small drops across most investor types and all servicer types,” said Mike Fratantoni, MBA's senior vice president and chief economist. “Forbearance exits dropped to 6 basis points, the lowest weekly level since mid-February, but new forbearance requests, at 4 basis points, matched the recent weekly low from early May.”  

“Although the headline employment growth number for May was lower than many had anticipated, other data show evidence of a strengthening job market. That is good news for homeowners who have been struggling and are looking for work, as more families can regain their incomes and start making their mortgage payments again.”

Read more about the share of mortgage loans in forbearance from the MBA's Forbearance and Call Volume survey. 

Homebuying Demand Declines As Prices Still Soar Out Of Buyers' Budgets

A new report revealed that new listings are holding up better than pending sales and are inching quite close to 2019 levels.

Analysis and Data
Jun 18, 2021
Redfin Reports Record-Breaking Median Home Prices

National median home sale price hit a record high of $377,200, up 26% from last year, according to a new Redfin report.

Analysis and Data
Jun 17, 2021
Mortgage Rates Decline Once Again As Inflation Concerns Grow

Mortgage rates are down once again in hopes to help quell concerns over inflation and the increase in home prices.

Analysis and Data
Jun 17, 2021
Home Flipping Rate And Profit Margins Decline

Home flipping and profit margins dropped amidst a housing boom, making conditions less favorable to investors.

Analysis and Data
Jun 17, 2021
Inventory Begins A Slow Recovery

Inventory grew 3.9% from April to May, according to Zillow's latest Market Report, after a year of steady decline.

Industry News
Jun 16, 2021
Commercial and Multifamily Debt Grows Throughout 2021

Total commercial and multifamily debt rose to $3.93 trillion by the end of the first quarter in 2021.

Analysis and Data
Jun 16, 2021