Skip to main content

Share Of Loans In Forbearance Continues to Fall Throughout July

Staff Writer
Jul 27, 2021

The total number of loans in forbearance as of July 18, 2021, decreased by 2 basis points from 3.5% of servicers' portfolio volume in the prior week to 3.48%.

KEY TAKEAWAYS
  • The total number of loans in forbearance as of July 18, 2021, decreased from 3.50% of servicers' portfolio volume in the prior week to 3.48%.
  • There are now 1.74 million homeowners left in forbearance.
  • 9.8% of total loans are in the initial stage of forbearance and 83.2% are in the forbearance extension.
  • The largest share of forbearance exits resulted in a loan deferral/partial claim (28%).

The total number of loans in forbearance as of July 18, 2021, decreased by 2 basis points from 3.5% of servicers' portfolio volume in the prior week to 3.48%. The Mortgage Bankers Association (MBA) Forbearance and Call Volume Survey reveals that now there are 1.74 million homeowners left in forbearance. 

The share of Fannie Mae and Freddie Mac loans fell 2 basis points to 1.81%. Ginnie Mae loans in forbearance to 4.35%. The share of other loans, meaning portfolio and private-label securities (PLS) increased 5 basis points to 7.38%. For independent mortgage bank (IMB) servicers, the share of loans in forbearance remained the same relative to the prior week at 3.68%. 

“The forbearance share decreased for GSE and Ginnie Mae loans, but increased for portfolio and PLS loans, as new forbearance requests increased for this category." said MBA's senior vice president and chief economist, Mike Fratantoni. "As is typical for mid-month reporting, forbearance exits slowed, and there was a slight increase in new requests. The net result was a small drop in the share of loans in forbearance - the 21st consecutive week of declines.” 

By stage, 9.8% of total loans are in the initial stage of forbearance and 83.2% are in the forbearance extension. The remaining 7% are forbearance re-entries. 

The largest share of forbearance exits resulted in a loan deferral/partial claim (28%). The second largest share represents borrowers who continued to make monthly payments during the forbearance period. The third represents borrowers who did not make their monthly payments and exited without a loss mitigation plan. (15.7%). 

More information on MBA’s forbearance data can be found at www.mba.org/fbsurvey.

About the author
Staff Writer
Katie Jensen is a staff writer at NMP.
Published
Jul 27, 2021
Foreign Interest In U.S. Soil Is Up (But Still Low)

Foreign buyers purchased $56B in U.S. homes last year — a 33% increase — though overall activity remains near historic lows

Jul 17, 2025
Black Potential Homebuyers Denied Nearly Twice As Often

Though homeownership rates among Black Americans have improved, they still lag behind other racial groups

Jul 16, 2025
Mortgage Applications Sink 10% As Rates Climb

Purchase and refinance activity stall; VA refinances reverse prior week’s gain

Jul 16, 2025
Fee Cures Quietly Costing Mortgage Lenders Thousands Per Loan

Complexity is rising — and so are the costs of getting fees wrong

Jul 15, 2025
Cost Challenges Hit Young And Old

First American economist finds growing pressure at opposite ends of the age spectrum

Jul 15, 2025
U.S. Housing Shortage Hits Record High: Analysis

Borrower demand remains strong, but is stifled by inventory and affordability barriers

Jul 14, 2025