The number of US mortgages in forbearance dropped for the ninth straight week – with 3.6 million homeowners still pausing their loan payments during the coronavirus pandemic, the Mortgage Bankers Association announced Monday.
The MBA’s weekly survey found that 7.21 percent of mortgages were in forebearance as of August 9, down from 7.44 percent a week earlier.
The survey found:
- The share of Ginnie Mae loans in forbearance decreased from 10.06 percent to 9.54 percent.
- The share of Fannie Mae and Freddie Mac loans in forbearance dropped from 5.19 percent to 4.94 percent.
- 7.42 percent of loans managed by independent mortgage banks were in forbearance, down from 7.71 percent the week before.
- 7.49 percent of bank-managed mortgages were in forbearance, down from 7.63 percent the week before.
“More homeowners exited forbearance last week, leading to the ninth straight drop in the share of loans in forbearance. However, the decline in Ginnie Mae loans in forbearance was again because of buyouts of delinquent loans from Ginnie Mae pools, which result in these FHA and VA loans being reported in the portfolio category,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “In a sign that more FHA and VA borrowers are struggling with a very tough job market, more Ginnie Mae borrowers requested than exited forbearance.”