Le Jour – The share of mortgage loans in forbearance drops slightly to 4.16%
The latest Mortgage Bankers Association (MBA) forbearance and call volume survey found that the total number of loans currently in forbearance decreased by 2 basis points from 4.18% of portfolio volume of agents the previous week to 4.16% as of May 30, 2021. According to MBA’s estimate, 2.1 million owners are on the forbearance plan.
The share of Fannie Mae and Freddie Mac loans in forbearance fell by 1 basis point to 2.18%. Ginnie Mae’s forbeard loans decreased by 1 basis point to 5.54%, while the forbearance share for portfolio loans and private label securities (PLS) decreased by 6 basis points to 8.31%. The percentage of loans in forbearance for managers of independent mortgage banks (IMBs) decreased by 2 basis points to 4.34%, and the percentage of loans in forbearance for depository agents decreased by 1 basis point to 4 , 33%.
“The share of forbeared loans fell for the 14th week in a row, with small declines for most types of investors and all types of services,” said Mike Fratantoni, senior vice president and chief economist of MBA . “Abstention outflows fell to 6 basis points, the lowest weekly level since mid-February, but new abstention requests, at 4 basis points, match the recent weekly low in early May. “
Fratantoni added: “Although the overall employment growth figure for May was lower than many had expected, other data shows signs of a strengthening labor market. their income and start making their mortgage payments again.
Key Findings from MBA forbearance and call volume survey — May 24 to May 30, 2021
- Total forbidden loans decreased by 2 basis points compared to the previous week: from 4.18% to 4.16%.
- By type of investor, the share of Ginnie Mae loans in abstention decreased compared to the previous week: from 5.55% to 5.54%.
- The share of Fannie Mae and Freddie Mac loans in forbearance decreased from the previous week: from 2.19% to 2.18%.
- The share of other loans (eg portfolio loans and PLS loans) withheld decreased compared to the previous week: from 8.37% to 8.31%.
- By stage, 11.1% of the total forbearance loans are at the initial stage of the forbearance plan, while 83.2% are in extension forbearance. The remaining 5.7% is income from abstention.
- The total number of weekly abstention requests as a percentage of the volume of the service portfolio (#) decreased compared to the previous week: from 0.05% to 0.04%.
- Among the cumulative abstentions for the period from June 1, 2020 to May 30, 2021:
- 27.4% resulted in a loan deferral / partial claim.
- 24.6% represented borrowers who continued to make their monthly payments during their forbearance period.
- 15.0% represented borrowers who had not made all of their monthly payments and who had abandoned the forbearance without a loss mitigation plan in place yet.
- 14.0% resulted in reinstatements, in which overdue amounts are reimbursed when the forbearance is terminated.
- 10.0% resulted in a loan modification or a trial loan modification.
- 7.5% resulted in loans being repaid either by refinancing or by selling the house.
- The remaining 1.5% resulted in redemption plans, short sales, acts in lieu or other reasons.
- Weekly volume of the service call center:
- As a percentage of the volume of the service portfolio (#), calls remained the same compared to the previous week at 6.5%.
- The average response speed increased from 1.3 minutes to 1.2 minutes.
- Drop-out rates fell from 4.1% to 3.8%.
- Average call duration fell from 7.7 minutes to 7.8 minutes.
- Forbidden loans in proportion to the volume of the management portfolio (#) as of May 30, 2021:
- Total: 4.16% (previous week: 4.18%)
- IMB: 4.34% (previous week: 4.36%)
- Custodians: 4.33% (previous week: 4.34%)
—Association of Mortgage Bankers