According to the latest Mortgage Bankers Association report Investigation report on forbearance and call volume, the total number of loans currently on hold decreased by 7 basis points, from 2.96% of service provider portfolio volume the previous week to 2.89% as of September 26, 2021. According to MBA’s estimate , 1.4 million owners are on an abstention plan.
The share of Fannie Mae and Freddie Mac loans in forbearance fell 6 basis points to 1.38%. Forborne Ginnie Mae loans fell 7 basis points to 3.35%, and the share of forbearance for portfolio loans and private label securities (PLS) fell 14 basis points to 6, 77%. The percentage of loans in forbearance for independent mortgage bank (IMB) services decreased by 5 basis points from the previous week to 3.19%, and the percentage of loans in forbearance for depository services decreased by 13 basis points at 2.93%.
“The share of loans withheld declined at a faster pace last week, falling 7 basis points, as outflows increased and new applications and readmissions declined,” said Mike Fratantoni, senior vice president and Chief Economist of MBA. “While 1.4 million homeowners remained in forbearance as of September 26, that number is expected to drop sharply over the next few weeks as many reach the 18-month expiration point of their forbearance conditions. Most borrowers who do come out of forbearance through a drive opt for a deferral plan, which allows them to resume their original payment, while moving the forfeited amount at the end of the loan. “
Fratantoni added: “Although the call volume dropped during the last week of September, we expect the services to be very busy until October. “