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- 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.”