Drop was driven by homeowners who needed assistance again
The share of mortgages in forbearance was down for the 13th straight week, as forbearance exits continue to move at a slower pace, according to the Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey.
As of May 23, forbearance rates inched down to 4.18% of servicers’ portfolio volume, a one-basis-point drop from the previous week. MBA estimated that 2.1 million homeowners are currently in forbearance plans.
“Forbearance re-entries increased to almost 5.6%, as more homeowners who had canceled forbearance needed assistance again,” said Mike Fratantoni, senior vice president and chief economist at MBA. “There was also an increase in the share of PLS and portfolio loans in forbearance, while the share for Fannie Mae, Freddie Mac, and Ginnie Mae loans decreased.”
Read more: What’s the impact of the end of forbearance?
The share of Fannie Mae and Freddie Mac loans in forbearance dwindled two basis points to 2.19%. Forbearance share for Ginnie Mae loans was down four basis points to 5.55%, while the percentage for portfolio loans and private-label securities (PLS) jumped 11 basis points to 8.37%. The forbearance percentage for independent mortgage bank servicers decreased two basis points to 4.36%, and the share for depository servicers edged down one basis points to 4.34%.
“Housing market data continues to paint a picture of strong demand and constrained supply. The resulting rapid growth in home equity will benefit homeowners, whether they choose to retain or sell their properties,” Fratantoni said.