The share of US mortgage borrowers whose loans are in forbearance dropped below 7 percent for the first time since mid-April, the Mortgage Bankers Association announced Monday in its weekly forbearance report.
There are 3.5 million American homeowners in forbearance plans as of September 13 – which works out to 6.93 percent of all mortgages, down from 7.01 percent the week before.
The MBA survey found:
- The share of Ginnie Mae loans in forbearance increased from 9.12 percent to 9.15 percent.
- The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 4.65 percent to 4.55 percent.
- 7.26 percent of independent mortgage bank loans were in forbearance, down from 7.33 percent.
- 71.8 percent of bank-managed mortgages were in forbearance, down from 7.21 percent.
“The share of loans in forbearance has dropped to its lowest level in five months, driven by a consistent decline of the GSE share in forbearance,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “However, not only the did the share of Ginnie Mae loans in forbearance increase, new requests for forbearance for these loans have increased for two consecutive weeks.”