The number of total loans in forbearance decreased by 26 basis points as of July 11—from 3.76% to 3.50%. This is the largest weekly drop since October, now leaving about 1.75 million homeowners who are currently in forbearance plans.
By the numbers:
– Fannie and Freddie loans in forbearance decreased 8 basis points to 1.83%.
– Ginnie Mae loans decreased 42 basis points to 4.36%.
– Portfolio loans and private-label securities in forbearance decreased 61 basis points to 7.33%.
– Loans in forbearance for independent mortgage bank services decreased 19 basis points to 3.68%
– Loans in forbearance for depository servicers decreased 36 basis points to 3.62%
“Forbearance exits edged up again last week and new forbearance requests dropped to their lowest level since last March, leading to the largest weekly drop in the forbearance share since last October and the 20th consecutive week of declines,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “The forbearance share decreased for every investor and servicer category.”
“The latest economic data regarding the job market and consumer spending continue to show a robust pace of economic recovery, which is supporting further improvements in the forbearance numbers as more homeowners are able to resume their payments,” added Fratantoni.