An Insider’s Look Into How Secondary Marketing Evaluates LOs

In this webinar we’ll explore the long-term financial impacts of renegotiations, extensions and fallouts, plus basic guidelines to be viewed as a professional by your secondary marketing department

HousingWire Annual Virtual Summit

Did you miss out on HousingWire Annual? We have you covered! Join us virtually on October 25 for a chance to see hand picked sessions from our in-person HousingWire Annual in Frisco. Register now for FREE!

How brokers can help today’s unique borrower

The average borrower has drastically changed throughout the years. More borrowers are self-employed, work remotely and have multiple streams of income. Learn about the tools to assist any borrower quickly and effectively.

Experts on how AI makes a difference in the mortgage process

Today’s HousingWire Daily features a roundtable discussion on “Humans versus really smart machines” and what the right mix looks like to gain efficiencies in the mortgage loan manufacturing process.


Forbearance numbers fall as borrower exits remain high

The total number of loans in forbearance declined by 8 basis points to 3.00%, according to the MBA

Servicers’ forbearance portfolio volume fell once again last week, as exits remained elevated compared to requests or re-entries. The total number of loans in forbearance dropped by eight basis points to 3.00% as of Sept. 12, according to the Mortgage Bankers Association (MBA).      

The most notable decline was in the portfolio loans and private-label securities (PLS) category, dipping by 32 basis points to 6.95%. 

Ginnie Mae loans in forbearance remained the same, at 3.39% of servicers‘ portfolio volume, after a decline of 24 bps in the prior week. Meanwhile, Fannie Mae and Freddie Mac loans dropped by five basis points to 1.47%.

The share of independent mortgage bank loans in forbearance fell 8 basis points to 3.25%. For depository servicers, the percentage declined five basis points to 3.10%.

Per the MBA’s estimate, 1.5 million homeowners are still in active forbearance plans. The survey included data on 36.8 million loans serviced as of Sept. 12, 74% of the first-mortgage servicing market.

Natural disasters and forbearance: What borrowers and mortgage servicers need to know

The United States is grappling with a sharp rise in natural disasters, including wildfires, an active hurricane season, floods, tornadoes and mudslides. The mortgage industry needs to be proactive in examining programs to help borrowers recover.

Presented by: Mr. Cooper

Mike Fratantoni, senior vice president and chief economist at the MBA, said in a statement that forbearance exits remained elevated last week, while new requests and re-entries were unchanged, representing 20% of loans in forbearance.

“At this point, borrowers in forbearance extensions are exiting at a faster rate as they near – or reach – the expiration of their maximum forbearance term.”

Total requests remained at 0.05% of servicing portfolio volume, while exits represented 0.16% of the total, the report said.

During the last 15 months, MBA’s data revealed that almost 29% of exits resulted in a loan deferral or partial claim. Also, around 22% represented borrowers who continued to pay during the forbearance period.

However, 16.4% were borrowers who did not make their monthly payments and did not have a loss mitigation plan.

The survey shows that 11.3% of total loans were in the initial stage last week, and 80.2% were in a forbearance extension. The remaining 8.5% were re-entries.

Servicer call volume decreased to 6.3%, down from 7.7% the week prior. The average call length was slightly prolonged, from 8.2 minutes to 8.3 minutes.

Leave a comment

Most Popular Articles

Fannie Mae: Mortgage rates and home prices will rise in ’22

Economists at Fannie Mae expect higher mortgage rates and home prices next year due to higher inflation, a tightening of monetary policy, and low home inventory

Oct 15, 2021 By

Latest Articles

What does it really mean to digitize the closing process?

ICE Mortgage Technology, a global provider of data, technology and market infrastructure, recently announced that Encompass eClose, its end-to-end eClose solution, is expanding its hybrid capabilities to now include full eNote and eVault functionality. In advance of that announcement, HousingWire Editor-in-Chief Sarah Wheeler had the opportunity to catch up with ICE Mortgage Technology President Joe Tyrrell to talk about what it actually means to digitize the closing process.

Oct 18, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please