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Last updated on April 1st, 2022 at 04:41 pm
As of February 28, 2021, the total number of loans now in forbearance is 5.20% showcasing a drop by 3 basis points from 5.23% of servicers’ portfolio volume in the prior week to 5.20% revealed the Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey.
According to MBA’s estimate, 2.6 million homeowners are in forbearance plans.
There was a decrease of 3-basis-point in the share of Fannie Mae and Freddie Mac loans in forbearance. Meanwhile, Ginnie Mae loans in forbearance decreased to 7.28% which is 7 basis points, an increase by 2 basis points to 9.05% are the forbearance share for portfolio loans and private-label securities (PLS).
The independent mortgage bank (IMB) servicers’ percentage of loans in forbearance decreased 6 basis points to 5.51%, and the depository servicer’s percentage of loans in forbearance decreased 1 basis point to 5.28%.
Mike Fratantoni, MBA’s Senior Vice President and Chief Economist said, in the last week of February, there was a small decline in the total share of loans in forbearance because forbearance exits increased.
More than 12 % of those homeowners in forbearance, were current at the end of February, which was almost 14 % at the end of January.
He said in the coming months, due to the improving economy, the soon-to-be passed stimulus package, and as many homeowners are reaching the 12-month mark of their forbearance plan could all influence the overall share.
In February, job growth picked up and the unemployment rate reduced, however, there are still almost 10 million people unemployed, with 4.1 million among the long-term unemployed said Frantantoni.
Homeowners, who are continuing to struggle during these challenging times are provided support by the American Rescue Plan.
Reference Source: MBA
