How many loans are still in forbearance?
The Mortgage Bankers Association’s (MBS) forbearance and call volume survey indicated that the total number of loans currently in forbearance fell to 6.87% from 6.93% the week before. The MBA estimates that 3.4 million owners are on a forbearance plan. Its forbearance and call volume survey covers the period September 14-20 and represents 74% of the senior mortgage management market, or 37.1 million loans.
For the 16th week in a row, the share of Fannie Mae and Freddie Mac loans in abstention fell. This week showed an improvement of 9 basis points, as it fell to 4.46%.
Ginnie Mae’s forborne loans remained unchanged from the previous week at 9.15%.
The abstention share for portfolio loans and private securities (PLS) also remained stable at 10.52%. The loan forbearance percentage for depository agents decreased by 7 basis points to 7.11%, and the loan forbearance percentage for independent mortgage bank (IMB) agents decreased by 3 basis points to 7 , 23%.
Mike Fratantoni, senior vice president and chief economist of MBA, said the share of forborne loans is at levels not seen since mid-April.
“Many homeowners with GSE loans come out of forbearance in a deferral plan and resume their original mortgage payment, but wait to pay the renounced amount until the loan is over,” said Fratantoni. “However, the overall picture is still somewhat mixed. The recent increase in forbearance requests, especially for those with FHA or VA loans, leaves Ginnie Mae’s share high as the pace of new requests reaches or exceeds the pace of exits. “
Fratantoni added: “The continued labor market churn is likely preventing many homeowners who have shown forbearance from opting out, given the level of economic uncertainty.”
Here, MBA breaks down the numbers from the forbearance survey and call volume for the week of September 14-20:
- Total forbearance loans decreased 6 basis points from the previous week: from 6.93% to 6.87%.
- By type of investor, the share of Ginnie Mae loans in abstention remained stable compared to the previous week at 9.15%.
- The share of Fannie Mae and Freddie Mac loans in forbearance decreased from the previous week: from 4.55% to 4.46%.
- The share of other loans (eg portfolio loans and PLS loans) withheld remained stable compared to the previous week at 10.52%.
- By stage, 30.26% of the total forbearance loans are at the initial stage of the forbearance plan, while 68.37% are in extension of forbearance. The remaining 1.37% is income from abstention.
- The total weekly forbearance requests as a percentage of the service portfolio volume (#) increased compared to the previous week: from 0.10% to 0.11%.
- Weekly volume of the service call center:
- As a percentage of the volume of the service portfolio (#), calls fell from 6.9% to 8.3%.
- Average response speed increased from 3.5 minutes to 3.0 minutes.
- Drop-out rates fell from 7.0% to 6.9%.
- The average call duration remained stable compared to the previous week at 7.8 minutes.
- Forbidden loans in proportion to the volume of the management portfolio (#) as of September 20, 2020:
- Total: 6.87% (previous week: 6.93%)
- IMB: 7.23% (previous week: 7.26%)
- Custodians: 7.11% (previous week: 7.18%)