The number of loans in forbearance jumped significantly as the number of Americans struggling financially continues to climb during the coronavirus pandemic.
The total number of loans in forbearance climbed from 2.73 percent to 3.74 percent during the week ending April 5, according to the Mortgage Bankers Association’s Forbearance and Call Volume Survey.
“With mitigation efforts seemingly in place for at least several more weeks, job losses will continue and the number of borrowers asking for forbearance will likely continue to rise at a rapid pace,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist.
The survey found:
- Mortgages backed by Ginnie Mae had the largest overall share in forbearance requests by investor type at 5.89 percent, up from 4.31 percent.
- Independent mortgage bank (IMB) servicers continue to have a higher share of loans in forbearance 4.17 percent.
- The share of Fannie Mae and Freddie Mac loans in forbearance increased from the prior week to 2.44 percent from 1.69 percent.
- 14.4 percent of calls to lenders were for forbearance, up from 11.6 percent the week before.
- Hold times decreased from 13 minutes to 10.3 minutes.
- Abandonment rates among people called declined from 21 percent to 17 percent.
“There was a decline in call center hold times and abandonment rates in the latest survey, which indicates the mortgage industry is adapting to the current environment by adding or reallocating staff and increasingly utilizing its websites to help borrowers,” Fratantoni said.