Fannie and Freddie Loans in Forbearance Drop Below 1%
The total number of loans now in forbearance decreased by 6 basis points to 2.15% of servicers' portfolio volume as of Oct. 24, 2021. According to the Mortgage Bankers Association's (MBA) latest Forbearance and Call Volume Survey, 1.1 million homeowners are in forbearance plans.
The breakdown:
- The share of Fannie Mae and Freddie Mac loans in forbearance decreased 3 basis points to 0.97%.
- Ginnie Mae loans in forbearance decreased 7 basis points to 2.65%
- Portfolio loans and private-label securities (PLS) declined 8 basis points to 5.13%
- Independent mortgage bank (IMB) servicers decreased 6 basis points relative to the prior week to 2.43%
- Loans in forbearance for depository servicers decreased 4 basis points to 2.07%
The takeaway:
"For the first time since March 2020, the share of Fannie Mae and Freddie Mac loans in forbearance dropped below 1%. A small decline for this investor category was matched by similarly small declines for Ginnie Mae and portfolio/PLS loans," said Mike Fratantoni, MBA's senior vice president and chief economist, in a statement. "Forbearance exits slowed at the end of October to the slowest pace since late August. With so many borrowers having reached the end of their 18-month forbearance term, we expect a steady pace of exits in November."
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