Note: This is as of August 23rd.
The Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance remained unchanged relative to the prior week at 7.20% as of August 23, 2020. According to MBA’s estimate, 3.6 million homeowners are in forbearance plans.
“The share of loans in forbearance was unchanged, as the decline in the share of GSE loans was offset by increases for Ginnie Mae, and portfolio and PLS loans. The pace of new forbearance requests has been relatively flat across investor types, but for those with GSE loans, the rate of exits from forbearance regularly exceeds the rate of new requests,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “The exception in these trends are borrowers with Ginnie Mae loans. The loss of enhanced unemployment insurance benefits, coupled with a consistently high rate of layoffs and uncertainty about the job market, are having a disproportionate impact on FHA and VA borrowers.”
By stage, 36.71% of total loans in forbearance are in the initial forbearance plan stage, while 62.43% are in a forbearance extension. The remaining 0.86% are forbearance re-entries
This graph shows the percent of portfolio in forbearance by investor type over time. Most of the increase was in late March and early April, and has been trending down for the last ten weeks.
The MBA notes: “Total weekly forbearance requests as a percent of servicing portfolio volume (#) remained unchanged relative to the prior week at 0.10%.”
There hasn’t been a pickup in forbearance activity related to the end of the extra unemployment benefits.