Forbearance Volume Tails Off on Strength of August Jobs Report
September 7, 2021
After a few weeks of leveling off, the latest Forbearance and Call Volume Survey from the Mortgage Bankers Association (MBA) has found that the total number of loans now in forbearance decreased by two basis points from 3.25% of servicers’ portfolio volume in the prior week to 3.23%. According to the MBA, an estimated 1.6 million U.S. homeowners remain in forbearance plans.
The share of GSE loans (Fannie Mae and Freddie Mac) in forbearance decreased three basis points from 1.66% to 1.63%, while the share of Ginnie Mae loans in forbearance plummeted 29 basis points from 3.92% to 3.63%. Conversely, the share of portfolio loans and private-label securities (PLS) increased 34 basis points from 7.18% to 7.52%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased one basis point from 3.50% to 3.49%, and the percentage of loans in forbearance for depository servicers decreased two basis points from 3.35% to 3.33%.
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