The latest report from the Mortgage Bankers Association (MBA) on loan forbearance rates nationwide found that the overall level declined slightly for the 10th week in a row, yet remains stubbornly stuck above 7 percent.
The report estimates that 3.6 million homeowners across the country remain in forbearance plans, with nearly two-thirds of those in extensions to their original three-month forbearances.
MBA’s Forbearance and Call Volume Survey found that 7.2 percent of servicers’ volume is in forbearance as of Aug. 16, down from 7.21 percent a week earlier.
“The share of loans in forbearance declined for the 10th week in a row, but the rate of improvement has slowed markedly. The extremely high rate of initial claims for unemployment insurance and high level of unemployment remain a concern and are indications of the challenges many households are facing,” MBA Senior Vice President and Chief Economist Mike Fratantoni said in a release. “While new forbearance requests remain low, particularly for Fannie Mae and Freddie Mac loans, the pace of exits from forbearance has declined for two straight weeks.”
The report found that 61.3 percent of forbearance loans are in extensions, with 37.9 percent in initial stages and about 0.7 percent as forbearance re-entries.
Ginnie Mae forbearances were flat, staying at 9.54 percent of its portfolio, while portfolio loans and private-label securities rose 3 basis points to 10.37 percent. Fannie Mae and Freddie Mac forbearances rose 1 basis point to 4.93 percent.
The survey covers the period from Aug. 10 through Aug. 16 and represents 75 percent of the first-mortgage servicing market, MBA stated.