Last week marks the 11th week in a row of decreases as the forbearance rate continues to drop.
Mortgage Bankers Association (MBA) estimates that as of last week, 2.7 million homeowners are still in active mortgage-loan forbearance. The overall rate of loan forbearances decreased last week from 5.67% of all servicers’ portfolio volume to 5.47%.
We break down the decrease based on the type of loan:
- The share of Fannie Mae and Freddie Mac loans in forbearance dropped 13 basis points to 3.36%
- Ginnie Mae loans in forbearance decreased 25 basis points to 7.70%
- Private-label securities (PLS) decreased by 32 basis points to 8.38%
- Independent mortgage bank (IMB) servicers decreased 25 basis points to 5.94%
- Depository services decreased 17 basis points from the previous week to 5.43%
Although numbers are showing a constant decrease, extensions are what keeps the decline at a low rate.
MBA’s Senior Vice President and Chief Economist Mike Fratantoni said that the declines in the share of loans in forbearance continued this week, with a significant increase in the rate of forbearance exits—particularly for portfolio and PLS loans.
Furthermore, there are more than 76% of borrowers in forbearance that are now in an extension, as we are well past the six-month point for most borrowers’ forbearance plans.”
Despite the continuous decrease of the forbearance requests and increase in forbearance exits, homeowners who continue to go through financial hardship due to the COVID-19 pandemic should get in touch with Analytics Before Foreclosure to work on actionable intelligence for their mortgage.
Homeowners who are nearing the end of their forbearance, may take advantage of their FREE discovery call at 866-857-5405 to come up with favorable options by the time their forbearance program ends.
