Mortgage Forbearance Drops to 3.87%
The Mortgage Bankers Association's (MBA) latest Forbearance and Call Volume Survey reported forbearance loans decreased by 4 basis points to 3.87% of servicers' portfolio volume as of June 27, 2021.
According to the MBA, there are an estimated 1.9 million homeowners in forbearance plans right now.
- By investor type, Ginnie Mae loans in forbearance decreased from 5.13% to 5.10%
- Fannie Mae and Freddie Mac loans in forbearance decreased from 2.02% to 1.99%
- The share of other loans in forbearance decreased from 7.97% to 7.92%
What it means:
This is the first time since last March that Fannie and Freddie loans in forbearance dropped below the 2% threshold. And the MBA predicts that strong job growth in June should provide "a springboard" for more improvements next month.
"The share in every investor type and almost every loan category dropped as well, bringing the number of homeowners in forbearance below 2 million," said Mike Fratantoni, MBA's senior vice president and chief economist. "The rate of forbearance exits and new forbearance requests remained at low levels, but we expect the pace of exits to increase with reporting next week for the beginning of July."