MBA Survey: "Share of Mortgage Loans in Forbearance Decreases Slightly to 8.47%" of Portfolio Volume - InvestingChannel

MBA Survey: “Share of Mortgage Loans in Forbearance Decreases Slightly to 8.47%” 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 Decreases Slightly to 8.47%

The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 1 basis point from 8.48% of servicers’ portfolio volume in the prior week to 8.47% as of June 21, 2020. According to MBA’s estimate, 4.2 million homeowners are in forbearance plans.

“The overall share of loans in forbearance declined for the second week in a row, led by the third straight drop in GSE loans,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Many borrowers initially received a three-month forbearance term, and as of June 21, 17 percent of loans in forbearance have now been extended, with the largest share of those being Ginnie Mae loans.”

Added Fratantoni, “The level of forbearance requests remains quite low as of mid-June. The rebound in the housing market is likely one of the factors that is providing confidence to both potential homebuyers and existing homeowners during these troubled times.”
emphasis added

MBA Forbearance Survey Click on graph for larger image.

This graph shows the percent of portfolio in forbearance by investor type over time.  Most of the increase was in late March and early April.

The MBA notes: “Forbearance requests as a percent of servicing portfolio volume (#) decreased across all investor types: from 0.15% to 0.14%.”

Related posts

Idiocy in Spain: Bank Proposal to Build More Houses, Issue More Mortgages, Despite Massive Inventory and Enormous Drop in Sales

Mish Global Economic Trend Analysis

Sky City: China to Build World’s Tallest Building, 220 Stories, in 90 Days

Mish Global Economic Trend Analysis

It’s No Wonder People Don’t Understand the “Public” Debt

Angry Bear

EU Budget Laugh of the Day “No One Is Discussing Quality”

Mish Global Economic Trend Analysis

Via Barry Ritholtz’s  Big Picture comes this PBS six minute …

Angry Bear

Politics and Specific Policies

Angry Bear