The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey reported that the total number of loans in forbearance decreased from 6.87% to 6.81% as of Sept. 27. The MBA estimates 3.4 million homeowners are currently in forbearance plans.
Fannie Mae and Freddie Mac’s share of loans in forbearance dipped for the 17th straight week to 4.39%, Ginnie Mae’s share of loans in forbearance increased to 9.16% and the forbearance share for portfolio loans and private-labeled securities decreased by 13 basis points to 10.39%, according to the MBA.
“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’s 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.”
The report also revealed that 28.50% of total loans in forbearance are in the initial forbearance plan stage, 70.07% are in forbearance extension and the final 1.43% are forbearance re-entries.