The number of mortgages in coronavirus-related forbearance dropped 14 basis points between Aug. 2 and Aug. 8, according to the Mortgage Bankers Association.
Loans in forbearance plans made up 3.26% of all outstanding mortgages, representing approximately 1.6 million homeowners. That number declined from 3.4% the week prior and reached the lowest level
A jump in exits by many borrowers facing the end of their terms led to the largest drop in forbearances in a month, according to the MBA’s SVP and Chief Economist Mike Fratantoni.
“New forbearance requests picked up slightly this week, particularly for Ginnie Mae loans, but overall trends remain positive. Incoming data continues to support our forecast of an
Shares of forborne mortgages shrunk for every investor type. Government-sponsored entities’ loans continued to have the lowest percentage of distress, dipping to 1.69% from 1.74%. Ginnie Mae loans — composed of
A 9.7% share of all mortgages with payments suspended for pandemic-related hardships sat in the initial forbearance stage, 82.8% shifted to extended plans and the remaining 7.5% re-entered forbearance after exiting previously.
Forbearance requests as a percentage of servicing portfolio volume rose to 0.06% from 0.04% the week before. Call center volume as a percentage of the portfolio also grew to 7.5% from 6.8%.
Of the exits through Aug. 8, 2021 from June 1, 2020, 28.2% ended in deferral or partial claim, 22.7% continued to make their monthly payments, 16.1% exited without a loss mitigation plan, 13.2% were reinstatements, 11% modified their loans, 7.4% paid through refinance or sale, and 1.4% entered a repayment plan, short sale, or a deed-in-lieu.
The MBA's sample for this week's survey includes a total of 48 servicers with 25 independent mortgage bankers and 21 depositories, as well as two subservicers. By unit count, the respondents represented about 74%, or 36.9 million, of outstanding first-lien mortgages.
