The rate of mortgages going into coronavirus-related forbearance has been declining in recent weeks and between June 15 and June 21, it decreased an additional basis point, according to the Mortgage Bankers Association.
Approximately 8.47% of all outstanding loans or an estimated 4.2 million mortgages sat in forbearance plans as of the third week of June, compared to 8.48% and about 4.2 million in the MBA’s report
"The overall share of loans in forbearance declined for the second week in a row, led by the third straight drop in GSE loans," Mike Fratantoni, the MBA's senior vice president and chief economist, said in a press release.
"Many borrowers initially received a three-month forbearance term, and as of June 21, 17% of loans in forbearance
The share of loans in forbearance at independent mortgage bank servicers went back up to 8.42% from 8.4% over that period. Depositories brought down the overall share, dropping to 9.09% from 9.15%.
The share of conforming mortgages — those purchased by Fannie Mae and Freddie Mac — in forbearance fell to 6.26% from 6.31%. Private-label securities and portfolio loans — products which were not addressed by the coronavirus relief act — saw their share of forbearance rise to 10.07% from 9.99% the week earlier.
Forbearance requests as a percentage of servicing portfolio volume inched down to 0.14% on June 21 from 0.15% on June 14. But call center volume as a percentage of portfolio volume increased to 7.8% from 7.7%.
However, if
The MBA's sample for this week's survey includes a total of 54 servicers including 29 independent mortgage bankers and 23 depositories. The sample also included two subservicers. By unit count, the respondents represented nearly 76%, or 38.2 million, of outstanding first-lien mortgages.