This week’s chart shows the course of the share of loans in forbearance by investor type over the past three months – from the earliest stages of the COVID-19 pandemic to the most recent reporting. According to MBA’s Weekly Forbearance and Call Volume Survey, the share of loans in forbearance grew from 0.25% as of March 8 to 8.55% as of June 7 – an 830 basis-point increase. Mortgages backed by Ginnie Mae saw the largest growth, escalating from 0.19% to 11.83%.
The steepest increase in forbearance volume took place the first two weeks in April when new forbearance requests as a percent of servicing portfolio volume peaked. Forbearance requests then declined for a period of eight weeks, resulting in a flattening of the trend. In May, some borrowers began exiting forbearance plans. Even with a slight pickup in forbearance requests for the week ending June 7, half of the servicers in the sample saw the forbearance share decline for at least one investor category. For those borrowers exiting forbearance plans, the major reasons cited by servicers were: cancellation/opt out (borrower stayed current); borrower reinstatement; and loan payoff.
MBA initiated a weekly survey of forbearance and call center activity the week of April 1, 2020. MBA’s survey data covers 38.2 million loans serviced as of June 7, 2020, representing 76 percent of the first mortgage servicing market. The survey follows a Monday through Sunday cadence. To participate in or subscribe to this weekly survey, please contact firstname.lastname@example.org
by Marina Walsh
Source: MBA’s Weekly Forbearance and Call Volume Survey