TRD INSIGHTS: 8.5% of home loans are in forbearance

Pace of requests slowed in part because homeowners were buoyed by CARES Act relief

New York Insights /
Jun.June 01, 2020 05:34 PM
(iStock)

(iStock)

Forbearance requests appear to be leveling off, according to weekly figures released by the Mortgage Bankers Association.

Mortgages in forbearance made up 8.5 percent of servicers’ portfolios for the week, up from 8.4 percent for the week ending May 17 and from 8.2 percent for the week before. That means roughly 4.2 million homeowners are now in forbearance.

The pace of new forbearance requests has declined for the last several weeks, and the last week of May continued the trend. Such requests accounted for 0.2 percent of servicing portfolio volume, marking the seventh consecutive weekly drop. The week prior, forbearance requests accounted for 0.28 percent of volume.

“Policy support for households, including expanded unemployment insurance benefits and other transfers, have helped many stay on their feet during this crisis,” MBA Chief Economist Mike Fratantoni said in prepared remarks.

Forbearance rates were considerably higher for some government-backed loans. Ginnie Mae-backed mortgages had the highest overall forbearance rate by investor type at 12 percent. Ginnie Mae guarantees home loans issued to lower-income borrowers by government agencies such as the Federal Housing Administration and Veterans Affairs. By contrast, only 6.39 percent of Fannie Mae and Freddie Mac loans were in forbearance.


Related Articles

arrow_forward_ios
1440 Broadway and CIM Group’s Shaul Kuba (Photos via CBRE and Getty)
Here’s what tenants pay at CIM & QSuper’s 1440 Broadway
Here’s what tenants pay at CIM & QSuper’s 1440 Broadway
(iStock/Illustration by Kevin Rebong for The Real Deal)
January home prices up 10% in biggest annual gain in 7 years
January home prices up 10% in biggest annual gain in 7 years
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Mortgage rates surge — and refinance applications sink
Mortgage rates surge — and refinance applications sink
Amazon leases half of the building. (Google Maps, Getty)
Here’s what Amazon and others are paying at 601W’s 410 Tenth Avenue
Here’s what Amazon and others are paying at 601W’s 410 Tenth Avenue
15 West 47th Street, 48 West 48th Street and 151 West 46th Street (Google Maps, Getty)
Here’s what tenants are paying at ELO’s Diamond District properties
Here’s what tenants are paying at ELO’s Diamond District properties
Canada, South Korea, Germany, Singapore, and the UK top the list of countries investing in real estate. (Getty)
South Korea now No. 2 foreign investor in US CRE
South Korea now No. 2 foreign investor in US CRE
Jerome Powell (Getty)
Powell sees new opportunity to reform low-income lending rule
Powell sees new opportunity to reform low-income lending rule
R&B Realty's Aron Rosenberg and Maverick's David Aviram of Maverick with 28 West 36th Street and 32 West 39th Street (Google Maps)
Midtown landlord sues to stop foreclosure by Maverick
Midtown landlord sues to stop foreclosure by Maverick
arrow_forward_ios

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

Loading...