The latest numbers from the Mortgage Bankers Association shows the number of loans in forbearance has increased to 7.54%, up from last week’s level of 6.99%. A total of 3.8 million homeowners are now in forbearance.
Mortgages backed by Ginnie Mae had the largest overall share of loans in forbearance by investor type (10.45%). The number of loans in forbearance for depository servicers rose to 8.41%, while the number of loans in forbearance for independent mortgage bank (IMB) servicers increased to 7.13%.
“The share of loans in forbearance increased once again in the last full week of April, but the pace of new requests slowed,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “With millions more Americans filing for unemployment over the week, the level of job market distress continues to worsen. That is why we expect that the share of loans in forbearance will continue to grow, particularly as new mortgage payments come due in May.”
Other Findings Of MBA's Forbearance and Call Volume Survey
- The share of Fannie Mae and Freddie Mac loans in forbearance increased relative to the prior week: from 5.46% to 5.85%.
- The share of other loans (e.g. private label securities and portfolio loans) in forbearance increased relative to the prior week: from 7.52% to 8.30%.
- Forbearance requests as a percent of servicing portfolio volume (#) dropped across all investor types for the third consecutive week relative to the prior week: from 1.14% to 0.63%.
Loans in forbearance as a share of servicing portfolio volume
- Total: 7.54% (previous week: 6.99%)
- IMBs: 7.13% (previous week: 6.52%)
- Depositories: 8.41% (previous week: 7.87%)
MBA’s latest Forbearance and Call Volume Survey covers the period from April 20 through April 26, 2020, and represents almost 77% of the first-mortgage servicing market (38.4 million loans).