Mortgages entering coronavirus-related forbearance fell off a cliff between Sept. 28 and Oct. 4, dropping 49 basis points, according to the Mortgage Bankers Association.
It's the largest decline since the pandemic started. Mortgages in forbearance plans represent 6.32% — an estimated 3.2 million — of all outstanding loans compared to 6.81% and 3.4 million
"With the forbearance program for federally backed loans under the
Fratantoni noted about two-thirds of forbearance exits were borrowers who either remained current on payments, repaid forborne payments, or moved to a deferral plan.
For the 18thweek in a row, the forbearance share of conforming mortgages — those purchased by Fannie Mae and Freddie Mac — fell, going to 4.03% from 4.39%. Ginnie Mae loans —
Private-label securities and portfolio loans in forbearance — products not addressed by the coronavirus relief act — went to 10.06% from 10.39%.
A 25.5% share of all forborne mortgages sit in the initial forbearance stage, 72.97% shifted to extended plans, with the remaining 1.53% are re-entering forbearance after a previous exit.
Forbearance requests as a percentage of servicing portfolio volume increased back to 0.11% from 0.08%, while call center volume as a percentage of portfolio volume went to 8.8% from 8.3%.
The MBA's sample for this week's survey includes a total of 49 servicers with 25 independent mortgage bankers and 22 depositories. The sample also included two subservicers. By unit count, the respondents represented about 74%, or 36.8 million, of outstanding first-lien mortgages.