MBA Survey: "Share of Mortgage Loans in Forbearance Increases to 8.53%" of Portfolio Volume - InvestingChannel

MBA Survey: “Share of Mortgage Loans in Forbearance Increases to 8.53%” of Portfolio Volume

Note: To put these numbers in perspective, the MBA notes “For the week of March 2, only 0.25% of all loans were in forbearance.”

From the MBA: Share of Mortgage Loans in Forbearance Increases to 8.53%

The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance increased from 8.46% of servicers’ portfolio volume in the prior week to 8.53% as of May 31, 2020. According to MBA’s estimate, almost 4.3 million homeowners are now in forbearance plans.

“The overall share of loans in forbearance increased by only 7 basis points compared to the prior week. With the job market beginning to gradually improve, more homeowners are exiting forbearance, and we are seeing declines in forbearance volume among some servicers,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “However, this week’s findings did reveal divergence among servicers. The share of loans in forbearance decreased for depository servicers but continued to increase for IMBs.”

Added Fratantoni, “While servicers reported only a 1-basis-point increase in the forbearance share for GSE and Ginnie Mae loans, the increase for private-label securities and portfolio loans rose to over 10 percent, which is higher than the rate on GSE loans.”
emphasis added

The MBA notes: “Forbearance requests as a percent of servicing portfolio volume (#) dropped across all investor types for the eighth consecutive week relative to the prior week: from 0.20% to 0.17%.”

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