As of Sept. 26, the total number of loans now in forbearance decreased by 7 basis points to 2.89%.
The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey estimates there are 1.4 million homeowners currently in forbearance plans.
The details:
– Fannie Mae and Freddie Mac loans in forbearance decreased 6 basis points to 1.38%.
– Ginnie Mae loans in forbearance decreased 7 basis points to 3.35%.
– Portfolio loans and private-label securities (PLS) decreased 14 basis points to 6.77%. – Independent mortgage bank (IMB) servicers decreased 5 basis points to 3.19%.
– Loans in forbearance for depository servicers decreased 13 basis points to 2.93%.
The takeaway:
“The share of loans in forbearance declined at a faster rate last week, dropping by 7 basis points, as exits increased and new requests and re-entries declined,” said Mike Fratantoni, MBA’s senior vice president and chief economist, in a statement. “While 1.4 million homeowners remained in forbearance as of Sept. 26, this number is expected to drop sharply over the next few weeks as many are reaching the 18-month expiration point of their forbearance terms. Most borrowers exiting forbearance through a workout are opting for a deferral plan, which allows them to resume their original payment, while moving the forborne amount to the end of the loan.”
Added Fratantoni, “Although call volume dropped in the last week of September, we expect that servicers will be very busy through October.”
