In the Mortgage Bankers Association’s (MBA) most recent Forbearance and Call Volume Survey, the data showed a decrease by 16 basis points – from 5.83 percent of a servicer’s portfolio volume in the prior week to 5.67 percent – in the number of mortgage loans in forbearance.
“With declines in the share of loans in forbearance across the board, the data this week align well with the positive news from October’s jobs report, which showed a gain of more than 900,000 private sector jobs, and a one percentage point decrease in the unemployment rate,” Mike Fratantoni, MBA senior vice president and chief economist said in a release. “A recovering job market, coupled with a strong housing market, is providing the support needed for many homeowners to get back on their feet.”
According to MBA, approximately 2.8 million homeowners are in forbearance plans. The survey also revealed Fannie Mae and Freddie Mac loans in forbearance dropped for the 22nd consecutive week to 3.49 percent, a 17-basis-point decrease. Ginnie Mae loans in forbearance decreased to 7.95 percent, an 18-basis-point decrease, and independent mortgage bank servicers saw theirs fall to 6.19 percent, an 8-basis-point decrease.
“However, the data continue to show that servicers are still having difficulties reaching borrowers who have reached the six-month point of their forbearance period,” Fratantoni said. “Servicers are required to get borrowers’ consent to extend forbearance beyond six months. Homeowners who continue to be impacted by hardships related to the pandemic should contact their servicer.”