Forbearance mortgages decline for seventh consecutive week – NMP

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The Mortgage Bankers Association’s latest forbearance and call volume survey finds the total number of loans currently in forbearance decreased by 7 basis points, from 7.74% of agent portfolio volume on the week previous 7.67% as of July 26, 2020.

According to the estimate of Mortgage Bankers, 3.8 million owners are in the forbearance plan. The share of Fannie Mae and Freddie Mac loans in forbearance fell for the eighth consecutive week to 5.41%, an improvement of 8 basis points. Ginnie Mae loans in forbearance increased by 1 basis point to 10.28%, and the share of forbearance for portfolio loans and private securities (PLS) decreased by 16 basis points to 10.37% . The loan forbearance percentage for depository agents fell to 7.95%, while the loan forbearance percentage for independent mortgage bank (IMB) agents decreased to 7.81%.

“The share of forbearance has gone down, but we are now seeing a noticeable trend developing over the last two weeks. The share of forbearance is decreasing for GSE loans but has increased slightly for Ginnie Mae loans,” said Ginnie Mae. Mike Fratantoni, Senior Vice President and Chief Economist, MBA. “The job market has cooled somewhat in recent weeks, with an increase in layoffs and other indications that the economic rebound may be running out of steam in the near future. Due to the increase in COVID-19 cases across the country, it is not surprising to see this situation impacting the Ginnie Mae market segment first.

Fratantoni added, “The higher level of forbearance Ginnie Mae loans will increase the amount of payments agents have to advance. We continue to monitor the liquidity of services during these difficult times. “

Key findings of the MBA forbearance and call volume survey – July 20 to July 26, 2020
Total forbidden loans decreased by 7 basis points compared to the previous week: from 7.74% to
7.67%.

  1. By type of investor, the share of Ginnie Mae loans withheld increased: by 10.27%
    at 10.28%.
  2. The share of Fannie Mae and Freddie Mac loans in forbearance decreased compared to
    the previous week: from 5.49% to 5.41%.
  3. The share of other loans (e.g. portfolio loans and PLS loans) in forbearance has decreased compared to
    to the previous week: from 10.53% to 10.37%.

The total number of weekly forbearance requests as a percentage of service portfolio volume (#) decreased
compared to the previous week from 0.13% to 0.10% – the lowest level reported since early March.
Weekly volume of the service call center:

  1. As a percentage of the volume of the service portfolio (#), calls increased from 9.0% to 6.7%.
  2. The average response speed increased from 2.6 minutes to 2.4 minutes.
  3. Drop-out rates fell from 6.8% to 5.0%.
  4. Average call duration increased slightly from 7.2 minutes to 7.3 minutes.

Forbidden loans in proportion to the volume of the management portfolio (#) as of July 26, 2020:

  1. Total: 7.67% (previous week: 7.74%)
  2. IMB: 7.81% (previous week: 7.85%)
  3. Custodians: 7.95% (previous week: 8.06%)

MBA’s latest forbearance and call volume survey covers the period July 20 to July 26, 2020 and accounts for 75% of the first mortgage services market (37.3 million loans)


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