The rate of mortgages going into coronavirus-related forbearance has been declining in recent weeks and between June 15 and June 21, it decreased an additional basis point, according to the Mortgage Bankers Association.

Approximately 8.47% of all outstanding loans or an estimated 4.2 million mortgages sat in forbearance plans as of the third week of June, compared to 8.48% and about 4.2 million in the MBA’s report the week prior.

“The overall share of loans in forbearance declined for the second week in a row, led by the third straight drop in GSE loans,” Mike Fratantoni, the MBA’s senior vice president and chief economist, said in a press release.

“Many borrowers initially received a three-month forbearance term, and as of June 21, 17% of loans in forbearance have now been extended, with the largest share of those being Ginnie Mae loans. The level of forbearance requests remains quite low as of mid-June. The rebound in the housing market is likely one of the factors that is providing confidence to both potential homebuyers and existing homeowners during these troubled times.”

The share of loans in forbearance at independent mortgage bank servicers went back up to 8.42% from 8.4% over that period. Depositories brought down the overall share, dropping to 9.09% from 9.15%.

The share of conforming mortgages — those purchased by Fannie Mae and Freddie Mac — in forbearance fell to 6.26% from 6.31%. Private-label securities and portfolio loans — products which were not addressed by the coronavirus relief act — saw their share of forbearance rise to 10.07% from 9.99% the week earlier.

Ginnie Mae mortgages — Federal Housing Administration, Department of Veterans Affairs and U.S. Department of Agriculture Rural Housing Service products — stayed flat for the third consecutive week at 11.83% and retained the highest percentage of loans in forbearance by investor type.

Forbearance requests as a percentage of servicing portfolio volume inched down to 0.14% on June 21 from 0.15% on June 14. But call center volume as a percentage of portfolio volume increased to 7.8% from 7.7%.

However, if Black Knight’s latest extrapolation through June 23 serves as an indicator, forbearances could rise in the MBA’s next report.

The MBA’s sample for this week’s survey includes a total of 54 servicers including 29 independent mortgage bankers and 23 depositories. The sample also included two subservicers. By unit count, the respondents represented nearly 76%, or 38.2 million, of outstanding first-lien mortgages.





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