Share of mortgage loans in forbearance remain unchanged for the week according to the Mortgage Bankers Association latest weekly survey…(MBA)
- Total loans now in forbearance remained unchanged relative to the prior week at 3.25% as of August 22, 2021
- 1.6 million homeowners are in forbearance plans, according to MBA estimates.
By stage, 10.2% of total loans in forbearance are in the initial forbearance plan stage, while 81.7% are in a forbearance extension. The remaining 8.1% are forbearance re-entries.
Mike Fratantoni, MBA’s Senior Vice President and Chief Economist, predicts a big drop over the next month…
- “We expect a sharp increase in forbearance exits over the next month as many borrowers reach the 18-month mark and see their forbearance plans end. For those borrowers who have exited in August, the majority either enter deferral plans or obtain modifications.”