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Share of Mortgage Loans in Forbearance Decreases to 3.00 Percent
press release, Mortgage Bankers Association
   

The Mortgage Bankers Association's (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 8 basis points from 3.08% of servicers' portfolio volume in the prior week to 3.00% as of September 12, 2021. According to MBA's estimate, 1.5 million homeowners are in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance decreased 5 basis points to 1.47%. Ginnie Mae loans in forbearance remained the same relative to the prior week at 3.39%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased 32 basis points to 6.95%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased 8 basis point to 3.25%, and the percentage of loans in forbearance for depository servicers decreased 5 basis points to 3.10%.

"The share of loans in forbearance decreased by 8 basis points last week, as forbearance exits remained elevated, and new forbearance requests and re-entries were unchanged," said Mike Fratantoni, MBA's Senior Vice President and Chief Economist. "20% of loans in forbearance are either new forbearance requests or re-entries. At this point, borrowers in forbearance extensions are exiting at a faster rate as they near - or reach - the expiration of their maximum forbearance term."

Key findings of MBA's Forbearance and Call Volume Survey - September 6 to September 12, 2021

 

  • Total loans in forbearance decreased by 8 basis points relative to the prior week: from 3.08% to 3.00%.
    • By investor type, the share of Ginnie Mae loans in forbearance remained the same relative to the prior week at 3.39%.
    • The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative to the prior week: from 1.52% to 1.47%.
    • The share of other loans (e.g., portfolio and PLS loans) in forbearance decreased relative to the prior week: from 7.27% to 6.95%.

  • By stage, 11.3% of total loans in forbearance are in the initial forbearance plan stage, while 80.2% are in a forbearance extension. The remaining 8.5% are forbearance re-entries.

  • Total weekly forbearance requests as a percent of servicing portfolio volume (#) remained the same relative to the prior week at 0.05%.

  • Of the cumulative forbearance exits for the period from June 1, 2020, through September 12, 2021, at the time of forbearance exit:
    • 28.6% resulted in a loan deferral/partial claim.
    • 21.9% represented borrowers who continued to make their monthly payments during their forbearance period.
    • 16.4% represented borrowers who did not make all of their monthly payments and exited forbearance without a loss mitigation plan in place yet.
    • 12.7% resulted in reinstatements, in which past-due amounts are paid back when exiting forbearance.
    • 11.6% resulted in a loan modification or trial loan modification.
    • 7.4% resulted in loans paid off through either a refinance or by selling the home.
    • The remaining 1.4% resulted in repayment plans, short sales, deed-in-lieus or other reasons.

  • Weekly servicer call center volume:
    • As a percent of servicing portfolio volume (#), calls decreased relative to the prior week: from 7.7% to 6.3%.
    • Average speed to answer increased from 1.6 minutes to 1.8 minutes.
    • Abandonment rates increased from 4.0% to 4.8%.
    • Average call length increased from 8.2 minutes to 8.3 minutes.

  • Loans in forbearance as a share of servicing portfolio volume (#) as of September 12, 2021:
    • Total: 3.00% (previous week: 3.08%)
    • IMBs: 3.25% (previous week: 3.33%)
    • Depositories: 3.10% (previous week: 3.15%)

 



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