The number of forbeared loans continues to decline, falling this week to 4.47%, down from last week’s total of 4.49% according to the Mortgage Bankers Association (MBA) latest survey on forbearance and call volume. Nationwide, the MBA estimates that 2.23 million Americans remain in some stage of abstention.
By investor type, the share of Fannie Mae and Freddie Mac loans in forbearance fell by two percentage points, from 2.44% to 2.42%, while Ginnie Mae loans in forbearance fell by 6.09% basis points at 6.02%.
The forbearance share of portfolio loans and private label securities (PLS) increased 13 basis points to 8.55%. The percentage of loans in forbearance for managers of independent mortgage banks (IMBs) fell by two basis points to 4.70%, and the percentage of loans in forbearance for deposit managers also fell by two basis points. basis points at 4.62%.
“The share of loans in forbearance fell for the ninth consecutive week, down two basis points. The exit rate has slowed over the past two weeks, with this week’s exit rate hitting the lowest since February, ”said Mike Fratantoni, Executive Vice President of the MBA and Chief Economist. “The increase in the forbearance share for portfolio loans and PLS highlights both the outstanding redemptions of overdue loans from the Ginnie Mae pools, as well as an increase in the forbearance share for other loans that are not guaranteed by the federal government.
By stages, 12.8% of the total forbearance loans were at the initial stage of the forbearance plan, while 82.3% were in forbearance extension and the remaining 4.9% were forbearance inflows.
Unemployment figures continue to fall, as the most recent US Department of Labor report found that for the week ending April 24, jobless claims stood at 553,000, a decrease of 13,000 from the previous week’s level. As more Americans return to the workforce, the more current forbearance plans will leave the workforce.
“The data on the labor market and the housing market remain strong,” said Fratantoni. “We anticipate that further hiring gains will help support many owners as they move out of forbearance in the coming months.”
Citing that the number of homeowners behind on their mortgages has doubled since the start of the pandemic, the Consumer Financial Protection Bureau (CFPB) has proposed changes to prevent impending foreclosure measures with emergency federal protections in the event of a loss. foreclosure that would eventually expire.
“The country has endured a deadly pandemic and appalling economic crisis for over a year,” said Dave Uejio, acting director of CFPB. “We must not lose sight of the dangers that many consumers still face.”
The MBA noted that, among the cumulative abstention exits for the period from June 1, 2020 to April 25, 2021:
- 27% resulted in a loan deferral / partial claim.
- 25.3% represented borrowers who continued to make their monthly payments during their forbearance period.
- 14.6% represented borrowers who failed to make all of their monthly payments and left forbearance without a loss mitigation plan in place.
- 14.4% gave rise to reinstatements, during which the overdue amounts are reimbursed upon termination of the abstention.
- 9.6% resulted in a loan modification or a trial loan modification.
- 7.5% resulted in loans being repaid either through refinancing or the sale of the house.
- The remaining 1.6% resulted in repayment plans, short sales, replacement acts or other reasons.
Regarding the weekly maintenance services call center volume, the call volume decreased compared to the previous week from 8.5% to 6.4%, with the average call duration remaining at about eight minutes.