Forbearance Rate Drops 34 BPS
Summary
The latest Mortgage Bankers Association (MBA) Forbearance and Call Volume Survey revealed that the total number of loans in forbearance decreased by 34 basis points from 2.62% of servicers portfolio volume the previous week to 2.82% for the week ending on October 10, 2021. The forbearance share for portfolio loans and private-label securities (PLS) fell by 108 basis points to 5.34%. Meanwhile, the percentage of loans for independent mortgage banks (IMB) servicers decreased by 25 basis points to 2.57% within one week. “Positive employment and wage prospects, continued home-price appreciation, and the availability of multiple loan workout options are factors that will smooth many homeowners transition out of forbearance.” Out of the cumulative forbearance exits from June 1, 2020, through October 10, 2021, 28.9% resulted in a loan deferral/partial claim. About 12% resulted in reinstatements, in which the past due amount is paid back when exiting forbearance.