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Based on the latest Forbearance and call volume survey, the total number of now deferred loans decreased 2 basis points from 3.50% of servicer portfolio size in the previous week to 3.48% as of July 18, 2021. MBA estimates 1.74 million homeowners are on deferral plans.

The Fannie Mae and Freddie Mac loan share of the forbearance decreased 2 basis points to 1.81%. Ginnie Mae's deferred loans decreased 1 basis point to 4.35%, while the portfolio loan and private label securities (PLS) deferral rate increased 5 basis points to 7.38%. The deferred mortgage lending (IMB) percentage remained the same at 3.68% from the previous week, and the deferred custodian percentage decreased 1 basis point to 3.61%.

"As is typical for reporting in the middle of the month, the number of exits from forbearance slowed and there was a slight increase in new applications. The net result was a small decrease in the share of credit in forbearance – the 21st straight week of declines, "said Mike Fratantoni, senior vice president and chief economist of the MBA. "The forbearance rate decreased for GSE and Ginnie Mae loans, but increased for portfolio and PLS loans as new forbearance requests for this category increased."

Key Findings of the Forbearance and Call Volume MBA Survey

  • Total deferred loans decreased by 2 basis points compared to the previous week: from 3.50% to 3.48%.
  • According to the type of investor, the percentage of Ginnie Mae loans in deferral decreased compared to the previous week: from 4.36% to 4.35%.
  • The share of Fannie Mae and Freddie Mac loans in the forbearance decreased compared to the previous week: from 1.83% to 1.81%.
  • The proportion of other loans (e.g. portfolio and PLS loans) in deferral rose compared to the previous week: from 7.33% to 7.38%.
  • By stage, 9.8% of total deferral loans are in the initial deferral plan phase, while 83.2% are in a deferral extension. The remaining 7.0% are re-entries on forbearance.
  • The total weekly forbearance requests as a percentage of the servicing portfolio (#) increased compared to the previous week: from 0.03% to 0.04%.
  • Of the cumulative forbearance exits for the period from June 1, 2020 to July 18, 2021:
  • 28.0% led to a loan deferral / partial claim.
  • 23.2% represented borrowers who continued their monthly payments during their deferral period.
  • 15.7% represented borrowers who did not make all of their monthly payments and ended the forbearance without a loss mitigation plan still in place.
  • 13.4% resulted in reinstatements where overdue amounts are repaid upon expiry of the deferral.
  • 10.8% resulted in a loan change or a trial loan change.
  • 7.4% resulted in loans being paid off either by refinancing or by selling the home.
  • The remaining 1.5% resulted from repayment plans, short sales, replacement contracts or other reasons.
  • Weekly Servicer Call Center Volume:
  • As a percentage of the volume of the servicing portfolio (#), calls increased compared to the previous week: from 6.4% to 7.8%.
  • The average response speed decreased from 2.0 minutes to 1.1 minutes.
  • The dropout rate fell from 4.7% to 4.1%.
  • The average call duration decreased from 8.1 minutes to 7.7 minutes.
  • Forbearance loans in relation to servicing portfolio volume (#) as of July 18, 2021:
  • Total: 3.48% (previous week: 3.50%)
  • IMBs: 3.68% (previous week: 3.68%)
  • Depots: 3.61% (previous week: 3.62%)
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source https://seapointrealtors.com/2021/07/28/mortgage-loans-in-forbearance-dips-to-3-48-percent-in-july/

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