The total number of mortgages in forbearance remained unchanged relative to the prior week at 7.2%, according to the Mortgage Bankers Association’s latest Forbearance and Call Volume Survey. MBA estimated that 3.6 million homeowners are currently in forbearance plans.
The share of Fannie Mae and Freddie Mac mortgages in forbearance dropped five basis points to 4.88%, the 12th straight week of improvement in the GSEs’ forbearance share. Ginnie Mae loans in forbearance increased by four basis points to 9.58%. The forbearance share of portfolio loans and private-label securities rose seven basis points to 10.44%. The share of loans in forbearance for depository servicers increased to 7.49%, and the percentage for independent mortgage bank servicers dropped to 7.41%.
“The share of loans in forbearance was unchanged, as the decline in the share of GSE loans was offset by increases for Ginnie Mae and portfolio and PLS loans,” said Mike Fratantoni, senior vice president and chief economist for MBA. “The pace of new forbearance requests has been relatively flat across investor types, but for those with GSE loans, the rate of exits from forbearance regularly exceeds the rate of new requests. The exception in these trends are borrowers with Ginnie Mae loans. The loss of enhanced unemployment insurance benefits, coupled with a consistently high rate of layoffs and uncertainty about the job market, are having a disproportionate impact on FHA and VA borrowers.”