The abstention share falls below 5% for the first time in a year
By type of investor, the share of Fannie Mae and Freddie Mac loans in abstention fell by six basis points to 2.77%. Forborne Ginnie Mae loans fell 20 basis points to 6.83%, while the share of portfolio loans and private label (PLS) securities declined by one basis point to 8.90%. Independent mortgage bank (IMB) agents saw a 14 basis point drop in their percentage of forbearance to 5.23%, and depositary agents saw their share drop five basis points to 5.10 %.
“Many owners need this support, although there are growing signs that the pace of economic activity is accelerating as the vaccine rollout continues,” said Frantatoni. “Those who are having continued difficulties due to the pandemic and wish to extend their forbearance beyond the 12 month point should contact their service agent. Agents cannot automatically extend forbearance conditions without the borrower’s consent.
Other key findings from the MBA survey:
• By stage, 13.8% of the total forbearance loans are at the initial stage of the forbearance plan, while 83.4% are in extension forbearance. The remaining 2.8% is income from abstention.
• Total weekly forbearance requests as a percentage of service portfolio volume remained stable from the previous week at 0.05%, the lowest level since the week ending March 15, 2020.