Mixed Reports On Forbearance Increases, Decreases

By Jim Perskie The number of mortgage loans in forbearance decreased slightly in the latest Mortgage Bankers Association weekly report – though there are other indications that the number may begin to climb again. The MBA report released Monday found that 8.47 percent of mortgages in the United States were in forbearance as of June 21, down from 8.48 percent the week before. That works out to about 4.2 million homeowners in forbearance – the third weekly drop in a row. “The overall share of loans in forbearance declined for the second week in a row, led by the third straight drop in GSE loans,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Many borrowers initially received a three-month…

FHFA Extends Forbearance For Multifamily Borrowers

Good news for renters. The Federal Housing Finance Agency announced Monday that Fannie Me and Freddie Mac are allowing mortgage servicers to extend forbearance agreements for multifamily property owners during the coronavirus pandemic. The announcement applies to existing owners with existing forbearance agreements, bringing the total forbearance – or pause in paying mortgage payments – to up to six months. “During the pandemic, FHFA has been focused on protecting renters and borrowers while ensuring the mortgage market functions as efficiently as possible,” FHFA Director Mark Calabria said. “The multifamily mortgage forbearance extension announced today will help renters stay in their homes and help property owners retain their properties.”  While the properties are in forbearance, landlords must suspend all evictions for…

Number Of US Mortgages In Forbearance Drops

By Jim Perskie The number of mortgage loans in forbearance in the United States began declining for the first time since the CARES Act was passed in response to economic hardships caused by the COVID-19 pandemic shutdown across the country. The Mortgage Bankers Association’s weekly survey found that 8.48 percent of mortgages were in forbearance as of June 14 – down from 8.55 percent the week before. That works out to an estimated 4.2 million homeowners in forbearance plans, down from 4.3 million the week before. “Fewer homeowners in forbearance underscores the continued improvements in the job market and provides another sign of the fundamental health of the housing market, which has rebounded considerably over the past several weeks,” said…

Share Of GSE Loans In Forbearance Decreases

The percentage of Fannie Mae and Freddie Mac loans in forbearance decreased for the first time since the start of the COVID-19 pandemic, according to the weekly forbearance survey released Monday by the Mortgage Bankers Association. The percentage of Fannie and Freddie mortgages in forbearance decreased from 6.4 percent to 6.38 percent. The share of all mortgages in the United States in forbearance increased slightly from 8.53 percent to 8.55 percent – or 4.3 million loans – as of June 7, the MBA said. “MBA’s survey results from the first week of June showed a slight uptick in the overall share of loans in forbearance, but this increase was primarily driven by a larger share of portfolio and PLS loans…

FHFA Director “Encouraged” By Forbearance Trajectory

By Jim Perskie Federal Housing Finance Agency Director Mark Calabria told Congress that forbearance rates in the United States are “manageable,” noting that the number of homeowners pausing mortgage payments has slowed considerably in recent weeks. In testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on Tuesday, Calabria said that the number of mortgages in forbearance were significantly lower than some had predicted. “Early in the crisis, there were a wide variety of predictions about the future effects of COVID-19 on housing markets,” Calabria testified. “Some observers contended that forbearance rates would reach as high as 25 to 50 percent. Given the unprecedented nature of the pandemic and the high degree of uncertainty about the economic…

Number Of Bank Mortgages In Forbearance Declines

The percentage of mortgages in forbearance in the United States barely increased last week, with the number bank-managed mortgages in forbearances actually decreasing for the first time since the COVID-19 pandemic took hold. The latest Mortgage Bankers Association report released Monday found that 8.53 percent of U.S. mortgages were in forbearance as of May 31 – up from 8.46 percent a week earlier. By contrast, the percentage increased by 1 to 2 percentage points during some weeks in April. That equates to about 4.3 million homeowners whose mortgages are in forbearance. “With the job market beginning to gradually improve, more homeowners are exiting forbearance, and we are seeing declines in forbearance volume among some servicers,” said Mike Fratantoni, MBA’s Senior…

Slight Increase In Number Of Mortgages In Forbearance

Forbearance numbers seem to have officially leveled off. The latest Mortgage Bankers Association report released Monday found that 8.46 percent of U.S. mortgages were in forbearance as of May 24 – up just 0.10 points from 8.36 percent a week earlier. By contrast, the percentage increased by 1 to 2 percentage points during some weeks in April. That equates to about 4.2 million homeowners whose mortgages are in forbearance. “MBA’s survey continues to indicate that fewer homeowners are seeking forbearance as more states across the country reopen their economies and prospects begin to improve,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. The $2 trillion CARES Act includes a moratorium on foreclosures and the right to forbearance on…

Share Of Mortgages In Forbearance Leveling Off

By Jim Perskie The number of mortgages in forbearance in the United States increased slightly in the latest report, but the rate of increase continues to level off as fewer homeowners are opting to push pause on their loan payments during the coronavirus pandemic. The latest Mortgage Bankers Association report released Tuesday found that 8.36 percent of U.S. mortgages were in forbearance as of May 17 – up 0.20 points from 8.16 percent a week earlier. By contrast, the percentage increased by 1 to 2 percentage points during some weeks in April. “Although job losses continue at extremely high rates, mortgage servicers are reporting only modest increases in the share of loans in forbearance as of May 17,” said Mike…

GSE Borrowers In Forbearance Can Buy, Refi – Eventually

By Jim Perskie Borrowers are eligible to refinance or buy a new home three months after their forbearance ends and they have made three straight payments under their repayment plan, according to new temporary guidance issued Tuesday by Fannie Mae and Freddie Mac. The guidance, announced by the Federal Housing Finance Agency, clarifies how lenders should handle loans for borrowers who are in forbearance but are looking to refinance or buy a new home with federally backed mortgages. “Homeowners who are in COVID-19 forbearance but continue to make their mortgage payment will not be penalized,” said Director Mark Calabria. “Today’s action allows homeowners to access record low mortgage rates and keeps the mortgage market functioning as efficiently as possible.” The $2…

8.16% Of U.S. Mortgages In Forbearance

The share of mortgage loans in forbearance climbed slightly last week to 8.16 percent, a second straight week of relatively small increases in the number of borrowers who have paused their payments during the coronavirus pandemic. The Mortgage Bankers Association said the percentage of mortgages in forbearance increased from 7.91 percent the week before and 7.54 percent a week earlier. All told, the MBA estimates that 4.1 million homeowners are now in forbearance plans for the week ending May 10. “The pace of forbearance requests continued to slow in the second week of May, but the share of loans in forbearance increased,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “There has been a pronounced flattening in loans…