TRD INSIGHTS: MBA finds 8% of home loans in forbearance

Figure was 7% a month ago; forbearance requests dropped, however

New York Insights /
May.May 18, 2020 04:10 PM
(Credit: iStock)

(Credit: iStock)

The share of home loans in forbearance grew again last week while relief requests slowed, according to weekly figures released Monday by the Mortgage Bankers Association.

Mortgages in forbearance made up 8.2 percent of servicers’ portfolios for the week. That was up from 7.9 percent for the week ending May 3 and 7.6 percent for the week before that.

The pace of forbearance requests has dropped, however. Such requests accounted for 0.32 percent of servicing portfolio volume, marking the fifth consecutive weekly drop. The week prior, forbearance requests accounted for 0.51 percent of volume.

“There has been a pronounced flattening in loans put into forbearance — despite April’s uniformly negative economic data, remarkably high unemployment, and it now being past May payment due dates,” MBA Chief Economist Mike Fratantoni said in prepared remarks.

Ginnie Mae-backed mortgages had the highest overall forbearance rate by investor type at more than 11 percent. Ginnie Mae guarantees home loans issued to lower-income borrowers by government agencies such as the Federal Housing Administration and Veterans Affairs. FHA and VA borrowers are more likely to work in industries hit hard by the coronavirus pandemic, such as hospitality and retail, Fratantoni said.

Fratantoni added that weekly growth in refinancings and home purchase applications coupled with the drop in forbearance requests could signal that the housing market is on the path to recovery as states gradually reopen their economies.


Related Articles

arrow_forward_ios
The Jacx at 28-07 Jackson Avenue and Tishman Speyer’s Rob Speyer (The Jacx, Tishman Speyer)
What tenants pay at Tishman Speyer’s The Jacx in LIC
What tenants pay at Tishman Speyer’s The Jacx in LIC
Pittsburgh is the place to be for affordable mortgage payments. San Jose and San Francisco? Not so much. (iStock)
Ten most/least expensive cities to buy a median-priced home
Ten most/least expensive cities to buy a median-priced home
Real estate stocks climbed higher in August despite the end of a national eviction moratorium and uncertainty over how the delta variant would affect retail spending and a return to the office. (iStock)
Real estate stocks dodge obstacles, charge forward in August
Real estate stocks dodge obstacles, charge forward in August
1450 Broadway and WeWork CEO Sandeep Mathrani (JLL, WeWork)
What WeWork and others pay at 1450 Broadway
What WeWork and others pay at 1450 Broadway
A statistical analysis found that lenders were 80 percent more likely to reject Black applicants for mortgages in 2019. (iStock)
Secret bias in mortgage algorithms hurts borrowers of color
Secret bias in mortgage algorithms hurts borrowers of color
From left: JPMorganChase CEO Jamie Dimon, Goldman Sachs CEO David Solomon and Morgan Stanley CEO James Gorman (Getty)
Demand for private-label mortgages on the rise
Demand for private-label mortgages on the rise
Rocket Companies originates record home purchase mortgages despite industry headwinds
Rocket Companies originates record home purchase mortgages despite industry headwinds
Rocket Companies originates record home purchase mortgages despite industry headwinds
Divvy Homes CEO Adena Hefets (Twitter)
Divvy Homes hits $2B valuation on new fundraising round
Divvy Homes hits $2B valuation on new fundraising round
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...