As forbearance activity wanes, many homeowners stick with plans

House, neighborhood

Based on the latest Mortgage Banker’s Association forbearance and call volume survey (MBA), the number of loans that are actively pending forbearance decreased by 6 basis points from March 1 to 7, to 5.14% from 5.20% of the servicer’s portfolio size.

The MBA estimates that 2.6 million homeowners are on forbearance plans.

According to the lenders, the percentage of Fannie Mae and Freddie Mac loans decreased to 2.88%, an improvement of 6 basis points.

Ginnie Mae’s deferred loan declined 12 basis points to 7.16%.

Portfolio loans and private label securities (PLS) were unchanged from the previous week at 9.05%.

The mortgage deferral rate for Independent Mortgage Services (IMB) decreased 6 basis points to 5.45% and the deferral rate for depositors decreased 9 basis points to 5.19%.

“A year after the pandemic broke out, many homeowners are approaching 12 months in their deferral plan. That is probably why the call volume from servicers rose to its highest level since last April and the deferral outlets rose to their highest level in the previous week. ”Level since January. With new forbearance applications unchanged, the proportion of loans in forbearance has decreased again, “said MBA senior vice president and chief economist Mike Fratantoni.” Homeowners on government-backed loans have up to 18 months forbearance but must contact their administrator to get that extra relief. “

Fratantoni added, “The American Rescue Plan provides the support they need to homeowners who continue to struggle through these troubled times, and now they are providing stimulus payments to households. We believe that this support, along with the improving labor market, will help many homeowners “get back on their feet.”

Frantanoni is one of several insiders who sworn to the rescue plan. and what it means for the industry.

The Federal Housing Finance Agency (FHFA) recently announced the extension of several measures that the agency says will align COVID-19 mortgage relief guidelines across the federal government. This announcement, which extends the temporary measures (until March 31st) until the end of June, follows the White House moratorium extended February 16 applied to all government-backed mortgages over the same period.

These measures include provisions for borrowers on Fannie Mae or Freddie Mac backed mortgages who may be eligible for an additional three month extension of the COVID-19 omission, according to the press release. This additional three month extension allows borrowers to be indulgent for up to 18 months.

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