Forbearance numbers continue to fall – MBA

Small drop in share of loans in forbearance represents 21st consecutive week of declines

Forbearance numbers continue to fall – MBA

The total number of mortgages in forbearance decreased by two basis points from 3.50% of servicers’ portfolio volume in the prior week, to 3.48% as of July 18, according to the latest figures from the Mortgage Bankers Association (MBA).

According to MBA’s estimate, 1.74 million homeowners are in forbearance plans.

Read more: Forbearance share dips as re-entries increase

The share of Fannie Mae and Freddie Mac loans in forbearance dropped two basis points to 1.81%. Meanwhile, Ginnie Mae loans in forbearance decreased one basis point to 4.35%, while the forbearance share for portfolio loans and private-label securities (PLS) increased five basis points to 7.38%.

Additionally, the percentage of loans in forbearance for independent mortgage bank (IMB) servicers remained the same relative to the prior week at 3.68%, and the percentage of loans in forbearance for depository servicers decreased one basis point to 3.61%. 

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

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