NUMBER OF MORTGAGES IN FORBEARANCE DROPS TO 3.5% » Mortgage Masters Group
25154
post-template-default,single,single-post,postid-25154,single-format-standard,bridge-core-1.0.5,qode-page-transition-enabled,ajax_fade,page_not_loaded,,qode-child-theme-ver-1.0.0,qode-theme-ver-28.1,qode-theme-bridge,wpb-js-composer js-comp-ver-6.7.0,vc_responsive

NUMBER OF MORTGAGES IN FORBEARANCE DROPS TO 3.5%

Graphic of the words Forbearance Plan to represent the number of mortgages in forbearance drops to 3.5%

Mortgage bankers say that many homeowners are coming out of forbearance, with only 7.4%, so far, either selling the home, doing a refi or otherwise paying off the mortgage. 1 in 4 (23.2%) never stopped making monthly payments; another 1 in 4 (28%) ended up having their loans deferred.

 

The number of homes in forbearance this week (3.5%) dropped again from last week’s numbers (3.76%), according to the Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey. According to MBA’s estimate, 1.75 million homeowners are in forbearance plans.

Percentage in forbearance by type of loan

      • Fannie Mae and Freddie Mac loans (conventional): Down 8 basis points to 1.83%.
      • Ginnie Mae (FHA, VA, etc.): Down 42 basis points to 4.36%
      • Portfolio loans and private-label securities (PLS): Down 61 basis points to 7.33%
      • Independent mortgage bank (IMB) servicers: Down 19 basis points to 3.68%
      • Depository servicers: Down 36 basis points to 3.62%

 

“Forbearance exits edged up again last week, and new forbearance requests dropped to their lowest level since last March, leading to the largest weekly drop in the forbearance share since last October and the 20th consecutive week of declines,” says Mike Fratantoni, MBA’s senior vice president and chief economist.

“The forbearance share decreased for every investor and servicer category,” he said, crediting recent economic data that supports “further improvements in the forbearance numbers as more homeowners are able to resume their payments.”

Where happened when homeowners came out of forbearance?

According to MBA, of all forbearance exits between June 1, 2020, and July 11, 2021:

      • 28.0% resulted in a loan deferral/partial claim

      • 23.2% were borrowers who kept making monthly payments in forbearance, perhaps seeing the forbearance option as a “just in case” tool

      • 15.7% didn’t make all of their monthly payments while in forbearance, yet exited the program without a loss-mitigation plan in place

      • 13.5% resulted in reinstatements – paying back past-due amounts and picking up where they left off

      • 10.7% resulted in a loan modification or trial loan modification.

      • 7.4% paid off the full loan, either by refinancing or selling the home

      • 1.5% resulted in repayment plans, short sales, deed-in-lieus or other reasons

 

Source: Florida Realtors®



CALL NOW 772-340-4003

Port St Lucie Mortgages, VA Home Loans & Mortgage Refinancing throughout the Treasure Coast and all of Florida

Port Saint Lucie • Fort Pierce • Sebastian • Stuart • Vero Beach • Sewall's Point • Palm City • Jensen Beach • Hobe Sound • Lakewood Park • Port Salerno • Fort Pierce South • White City • North River Shores • & serving all the great state of Florida

Palm Beach Mortgages, VA Home Loans & Mortgage Refinancing throughout Palm Beach County and all of Florida

West Palm Beach • Boca Raton • Boynton Beach • Delray Beach • Wellington • Jupiter • Palm Beach Gardens • Greenacres • Lake Worth • Royal Palm Beach • Riviera Beach • Palm Springs • Belle Glade • North Palm Beach • Lantana • Palm Beach • Lake Park • Pahokee • Tequesta • South Bay • & serving all the great state of Florida

Broward Mortgages, VA Home Loans & Mortgage Refinancing throughout Broward County and all of Florida

Fort Lauderdale • Pembroke Pines • Hollywood • Miramar • Coral Springs • Pompano Beach • Davie • Plantation • Sunrise • Deerfield Beach • Lauderhill • Weston • Tamarac • Margate • Coconut Creek • Oakland Park • North Lauderdale • Hallandale Beach • Lauderdale Lakes • Dania Beach • & serving all the great state of Florida

Miami Mortgages, VA Home Loans & Mortgage Refinancing throughout Miami-Dade County and all of Florida

Miami • Hialeah • Miami Gardens • Miami Beach • Homestead • North Miami • Coral Gables • Doral • North Miami Beach • Cutler Bay • Aventura • Miami Lakes • Palmetto Bay • Hialeah Gardens • Sunny Isles Beach • Pinecrest • Opa-locka • Miami Springs • Sweetwater • Key Biscayne • & serving all the great state of Florida

Florida Mortgages, VA Home Loans & Mortgage Refinancing throughout all the great state of Florida

Jacksonville • Tampa • St. Petersburg • Orlando • Tallahassee • Cape Coral • Gainesville • Clearwater • Lakeland • Deltona • Largo • Melbourne • Fort Myers • Daytona Beach • Kissimmee • North Port • Ocala • Port Orange • Sanford • Pensacola • & serving all the great state of Florida