Mortgage forbearance rates decreased by 2 basis points from 3.50% of servicers’ portfolio volume in the prior week to 3.48%, as of July 18, 2021, according to the Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey.
MBA estimates there are currently 1.74 million homeowners in forbearance plans.
Key findings:
– Total loans in forbearance decreased by 2 basis points, from 3.50% to
3.48%.
– The share of Ginnie Mae loans in forbearance decreased from 4.36% to 4.35%.
– The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 1.83% to 1.81%.
– The share of other loans (e.g., portfolio and PLS loans) in forbearance increased
from 7.33% to 7.38%.
– By stage, 9.8% of total loans in forbearance are in the initial forbearance plan stage, while 83.2% are in a forbearance extension. Seven percent are forbearance re-entries.
“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,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “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.”
