Forbearance numbers down, but still 'remarkably high'
The total number of loans in forbearance fell seven basis points from 5.9% of servicers’ portfolio volume the prior week to 5.83% as of Oct. 25, according to the latest estimate from the Mortgage Bankers Association. The MBA estimated that 2.9 million homeowners are now in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the 21st consecutive week to 3.66% – a six-basis-point reduction. Ginnie Mae loans in forbearance dropped four basis points to 8.13%, and the forbearance share for portfolio loans and private-label securities fell eight basis points to 8.82%.
The percentage of loans in forbearance for independent mortgage bank servicers fell eight basis points to 6.27%, while the percentage of loans in forbearance for depository servicers held steady at 5.86%.
“With more borrowers exiting forbearance in the prior week, the share of loans in forbearance declined across all loan types. Almost half of forbearance exits to date have been from borrowers who remained current while in forbearance, or who were reinstated by paying back past-due amounts,” said Mike Fratantoni, MBA senior vice president and chief economist. “The share of loans in forbearance has returned to levels last seen in early April, but it still remains remarkably high. Further improvement will require ongoing recovery in the job market, as well as additional fiscal stimulus.”