the latest forbearance and call volume survey Mortgage Bankers Association (MBA) revealed that the total number of loans currently on hold fell to 3.50%, down 26 basis points from 3.76% of agent portfolio volume the previous week . MBA estimates that 1.75 million homeowners are currently on a forbearance plan.
The share of Fannie Mae and Freddie Mac (GSE) loans in forbearance fell by eight basis points, from 1.91% to 1.83%. Forborne Ginnie Mae loans fell 42 basis points from 4.78% to 4.36%, while the share of forbearance for portfolio loans and private label (PLS) securities declined by 61 basis points, from 7.94% to 7.33%. The percentage of loans in forbearance for managers of independent mortgage banks (IMBs) decreased by 19 basis points to 3.68%, and the percentage of loans in forbearance for depository agents decreased by 36 basis points to 3 , 62%.
“Abstention outflows rose again last week and new abstention requests fell to their lowest level since last March, resulting in the largest weekly drop in the abstention share since last October and the 20th week. consecutive decline, “said Mike Fratantoni, SVP and Chief Economist of the MBA. “The share of abstention has decreased for each category of investor and service.”
By stages, 9.8% of the total forbearance loans were at the initial stage of the forbearance plan, while 83.4% were in extension forbearance. The remaining 6.8% is income from abstention.
“The latest economic data regarding the labor market and consumer spending continues to show a strong pace of economic recovery, supporting further improvements in the forbearance numbers as more homeowners are able to resume their payments, ”said Fratantoni.
Signs of this economic recovery can be seen in the latest figures from the US Department of Labor, which found that for the week ending July 10, the figure put forward for seasonally adjusted initial jobless claims was 360,000, a decrease of 26,000 from the revised level of the previous week, the lowest level. lowest for initial requests since March 14, 2020, when it was 256,000. Overall, in June, the Bureau of Labor Statistics (BLS) Report that the US economy has created 850,000 jobs.
Among the cumulative abstentions for the period from June 1, 2020 to July 11, 2021:
- 28% resulted in a loan deferral / partial claim.
- 23.2% represented borrowers who continued to make their monthly payments during their forbearance period.
- 15.7% represented borrowers who had not made all of their monthly payments and who walked out of forbearance without a loss mitigation plan still in place.
- 13.5% resulted in reinstatements, in which overdue amounts are reimbursed when the abstention is terminated.
- 10.7% resulted in a loan modification or a trial loan modification.
- 7.4% resulted in loans being repaid either by refinancing or by selling the house.
- 1.5% resulted in redemption plans, short sales, acts in lieu or other reasons.
Weekly server call center volume declined from the previous week, from 7.3% to 6.4%, with average call duration edging up from 8.0 minutes to 8.1 minutes.