MBA: Share of Loans in Forbearance Falls to 6.81%
The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey reported loans now in forbearance decreased by 6 basis points to 6.81% of servicers’ portfolio volume as of Sept. 27, from 6.87% the prior week. MBA now estimates 3.4 million homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the 17th week in a row to 4.39% – a 7-basis-point improvement. Ginnie Mae loans in forbearance increased by 1 basis point to 9.16%, while the forbearance share for portfolio loans and private-label securities decreased by 13 basis points to 10.39%. The percentage of loans in forbearance for depository servicers decreased by 8 basis points to 7.03%, while the percentage of loans in forbearance for independent mortgage bank servicers decreased by 4 basis points to 7.19%.
“As of the end of September, there continues to be a slow and steady decrease in the share of loans in forbearance – driven by consistent declines in the GSE loan share – and a persistently high amount in the Ginnie Mae portfolio,” said Mike Fratantoni, MBA Senior Vice President and Chief Economist. “The significant churn in the labor market now, more than six months into the pandemic, is still causing financial distress for millions of homeowners. As a result, more than 70 percent of loans in forbearance are now in an extension.”
Key findings of MBA’s Forbearance and Call Volume Survey – September 21 – 27
- Total loans in forbearance decreased by 6 basis points relative to the prior week: from 6.87% to 6.81%.
- By investor type, the share of Ginnie Mae loans in forbearance increased relative to the prior week: from 9.15% to 9.16%.
- The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative to the prior week: from 4.46% to 4.39%.
- The share of other loans (e.g., portfolio and PLS loans) in forbearance decreased relative to the prior week: from 10.52% to 10.39%.
- By stage, 28.50% of total loans in forbearance are in the initial forbearance plan stage, while 70.07% are in a forbearance extension. The remaining 1.43% are forbearance re-entries.
- Total weekly forbearance requests as a percent of servicing portfolio volume (#) decreased relative to the prior week: from 0.11% to 0.08%.
- Weekly servicer call center volume:
- As a percent of servicing portfolio volume (#), calls decreased from 8.3% to 6.8%.
- Average speed to answer decreased from 3.0 minutes to 2.3 minutes.
- Abandonment rates decreased from 6.9% to 5.3%.
- Average call length decreased from 7.8 minutes to 7.6 minutes.
- Loans in forbearance as a share of servicing portfolio volume (#) as of September 27:
- Total: 6.81% (previous week: 6.87%)
- IMBs: 7.19% (previous week: 7.23%)
- Depositories: 7.03% (previous week: 7.11%)
MBA’s latest Forbearance and Call Volume Survey represents 74% of the first-mortgage servicing market (37.1 million loans).