Small drop in share of loans in forbearance represents 21st consecutive week of declines
The total number of mortgages in forbearance decreased by two basis points from 3.50% of servicers’ portfolio volume in the prior week, to 3.48% as of July 18, according to the latest figures from the Mortgage Bankers Association (MBA).
According to MBA’s estimate, 1.74 million homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance dropped two basis points to 1.81%. Meanwhile, Ginnie Mae loans in forbearance decreased one basis point to 4.35%, while the forbearance share for portfolio loans and private-label securities (PLS) increased five basis points to 7.38%.
Additionally, the percentage of loans in forbearance for independent mortgage bank (IMB) servicers remained the same relative to the prior week at 3.68%, and the percentage of loans in forbearance for depository servicers decreased one basis point to 3.61%.
“As is typical for mid-month reporting, forbearance exits slowed, and there was a slight increase in new requests,” said Mike Fratantoni, senior vice president and chief economist of MBA. “The net result was a small drop in the share of loans in forbearance – the 21st consecutive week of declines. The forbearance share decreased for GSE [government-sponsored enterprise] and Ginnie Mae loans, but increased for portfolio and PLS loans, as new forbearance requests increased for this category."
