The total share of mortgage loans in forbearance decreased for the fifth straight week, from 8.18 percent of servicers’ portfolio volume in the previous week to 7.8 percent the week ending July 12, 2020, according to the Mortgage Bankers Association’s (MBA) most recent forbearance and call volume survey.
The MBA estimates that there are now roughly 3.9 million homeowners enrolled in forbearance plans.
“The share of loans in forbearance dropped to its lowest level in over two months, driven by an increase in the pace of exits as more homeowners have been able to get back to work,” Mike Fratantoni, senior vice president and chief economist of the MBA, said in a statement. “The decline in the forbearance share was broad based, with decreases for GSE, Ginnie Mae, and portfolio/PLS loans.”
Across all loan servicer types, the percentage of mortgages in forbearance decreased during the week ending on July 12.
Fannie Mae and Freddie Mac loans in forbearance dropped for the sixth consecutive week from 6.07 percent the previous week to 5.64 percent. Ginnie Mae loans in forbearance declined from 10.56 percent the week prior to 10.26 percent, and portfolio loans and private label securities (PLS) dropped from 10.93 percent to 10.41 percent. Meanwhile, loans in forbearance for depository servicers declined from 8.8 percent to 8.23 percent, and loans in forbearance for independent mortgage bank (IMB) servicers dropped from 8.1 percent to 7.83 percent.
The total number of weekly forbearance requests as a percent of servicing portfolio volume remained consistent to the previous week at 0.13 percent.
“Almost half of borrowers remaining in forbearance are now in an extension of the original term, while the remainder are in their initial forbearance plan,” Fratantoni added. “The pace of new forbearance requests remains quite low compared to earlier in the crisis, but we are watching carefully for any increases due to either the pick-up in COVID-19 cases or the cessation of enhanced unemployment insurance benefits at the end of this month.”