Number Of Mortgage Loans In Forbearance Decreases To 6.93%: MBA

(RTTNews) - The number of mortgage loans in forbearance dropped to 6.93%, according to the Mortgage Bankers Association.

The MBA's latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance decreased by 8 basis points from 7.01% of servicers' portfolio volume in the prior week to 6.93% as of September 13, 2020.

According to MBA's estimate, 3.5 million homeowners are in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the 15th week in a row to 4.55%, which is a 10-basis-point improvement.

Meanwhile, Ginnie Mae continues to be the exception, as its loans in forbearance increased slightly by 3 basis points to 9.15%.

"The share of loans in forbearance has dropped to its lowest level in five months, driven by a consistent decline of the GSE share in forbearance," said Mike Fratantoni, MBA's Senior Vice President and Chief Economist. "However, not only the did the share of Ginnie Mae loans in forbearance increase, new requests for forbearance for these loans have increased for two consecutive weeks. While housing market data continue to show a quite strong recovery, the job market recovery appears to have slowed, and we are seeing the impact of this slowdown on FHA and VA borrowers in the Ginnie Mae portfolio."