AIP - Norman Spencer
TitlePac
Register
Log In
Forget your Password?

Home
Directory
Bulletins
Forums
Blogs
Articles
Links
Classifieds
About Us
Contact Us
Advertise
FAQ
Privacy Policy


Share of Mortgage Loans in Forbearance Increases to 8.53%
press release, Mortgage Bankers Association
   

The Mortgage Bankers Association's (MBA) latest Forbearance and Call Volume Surveyrevealed that the total number of loans now in forbearance increased from 8.46% of servicers' portfolio volume in the prior week to 8.53% as of May 31, 2020. According to MBA's estimate, almost 4.3 million homeowners are now in forbearance plans.

Mortgages backed by Ginnie Mae again had the largest overall share of loans in forbearance by investor type (11.83%). The percentage of loans in forbearance for depository servicers dropped by 1 basis point to 9.18%, while the percentage of loans in forbearance for independent mortgage bank (IMB) servicers increased to 8.39%.

"The overall share of loans in forbearance increased by only 7 basis points compared to the prior week. With the job market beginning to gradually improve, more homeowners are exiting forbearance, and we are seeing declines in forbearance volume among some servicers," said Mike Fratantoni, MBA's Senior Vice President and Chief Economist. "However, this week's findings did reveal divergence among servicers. The share of loans in forbearance decreased for depository servicers but continued to increase for IMBs."

Added Fratantoni, "While servicers reported only a 1-basis-point increase in the forbearance share for GSE and Ginnie Mae loans, the increase for private-label securities and portfolio loans rose to over 10 percent, which is higher than the rate on GSE loans."

Key findings of MBA's Forbearance and Call Volume Survey - May 25 to May 31, 2020

 

  • Total loans in forbearance grew by 7 basis points relative to the prior week: from 8.46% to 8.53%.
    • By investor type, the share of Ginnie Mae loans in forbearance increased relative to the prior week: from 11.82% to 11.83%.
    • The share of Fannie Mae and Freddie Mac loans in forbearance increased relative to the prior week: from 6.39% to 6.40%.
    • The share of other loans (e.g., private-label securities and portfolio loans) in forbearance increased the most by investor type and relative to the prior week: from 9.67% to 10.03%.

  • Forbearance requests as a percent of servicing portfolio volume (#) dropped across all investor types for the eighth consecutive week relative to the prior week: from 0.20% to 0.17%.

  • The increase in weekly servicer call center volume was likely driven by end-of-month payment inquiries.
    • As a percent of servicing portfolio volume (#), calls increased from 6.4% to 6.7%.
    • Average speed to answer increased relative to the prior week from 1.3 minutes to 1.6 minutes.
    • Abandonment rates increased from 4.0% to 5.2%.
    • Average call length increased from 6.7 minutes to 7.3 minutes.

  • Loans in forbearance as a share of servicing portfolio volume (#) as of May 31, 2020:
    • Total: 8.53% (previous week: 8.46%)
    • IMBs: 8.39% (previous week: 8.21%)
    • Depositories: 9.18% (previous week: 9.19%)

 

MBA's latest Forbearance and Call Volume Survey covers the period from May 25 through May 31, 2020, and represents 76% of the first-mortgage servicing market (38.2 million loans).



to post a comment on this article: login - or - register



Redvision (DataTrace)
Directory

The Source of Title Business directory has 8757 listed companies.

Leave feedback on a company:
SOT ID #:  learn more...
DRN Title Search
Blogs

Read other users' blogs-- or start your own!

Most Recent Blog Posts:

How You Can Conduct a Closing in Your Office
Michele Blanco's Blog
2020/05/11
0 comments

Only allowing e-recording could be a BIG problem for us
Jeanine Johnson's Blog
2020/03/23
4 comments

Hennepin County MN Only Accepting Electronic Documents at this time
Jeanine Johnson's Blog
2020/03/16
0 comments

NAILTA
Forums

Source of Title's Forums are the place for title industry discussions.
Recent posts in the forums:



Classifieds

Buy, sell, or trade! Browse the ads or post your own!

Title Abstractor
July 01 2020
Hello, my name is Johanna Malki, I have been in this business 20+ years, I carry E & O insurance and work in Florida. I have worked for many title companies in the past and present. Looking for someone who will appreciate
years of experience. pl...[more info]


email
© 2007, Source of Title.