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

Sessions from HousingWire Annual 2021 are going to be virtually streamed on October 25. Register now for FREE to tune into what housing industry leaders had to say this year!

How servicers can access timely, accurate data insights

Learn how to navigate the challenges in today’s market – for example, the need for ongoing, on-demand access to near-real-time data and the ability to access those data insights in a timely and accurate manner.

Steve Murray on new brokerage models, CFPB crackdowns

Today’s HousingWire Daily features a discussion on the emergence of a new brokerage model and the validity behind the concerns against institutional investors.


Forbearance rate falls to 7.2%, MBA says

But calls from borrowers to service centers have risen and forbearance exits have slowed, report shows

The U.S. forbearance rate declined for the second consecutive week, falling to the lowest level since mid-April, according to the Mortgage Bankers Association.

The share of mortgages with agreements to suspend payments fell to 7.2% from 7.21%, MBA said in a report on Monday. The forbearance rate for Fannie Mae and Freddie Mac loans dropped 1 basis point to 4.93%, while the rate for Ginnie Mae loans that include loans backed by the Federal Housing Administration was flat at 9.54%.

The decline comes even after the $600 a week beefed-up unemployment benefits that were part of the CARES Act expired on July 31. While President Donald Trump signed a directive on Aug. 8 that would pay $400 a week if states kicked in a quarter of that amount, it’s now been changed to $300 a week and only a handful of states have signed up.

“We remain surprised that forbearance rates are not climbing despite the expiration of enhanced unemployment benefits,” Jaret Seiberg, managing director of Cowen Washington Research Group said in a note to clients. “We are not sure how long this trend can continue.”

The number of Americans filing initial claims for jobless benefits rose above 1 million during the week ended Aug. 15, increasing for the first time since late July, as the COVID-19 pandemic fueled layoffs. The pandemic’s death toll topped 177,000 on Monday, according to data from Johns Hopkins University.

Calls from mortgage borrowers to the servicers handling their home loans have risen for four consecutive weeks, and exits from forbearance plans have slowed, according to the MBA report.

Measured as a percent of servicing portfolio, calls rose to 8.7% from 7.9% in the prior week, the MBA report said.

“The extremely high rate of initial claims for unemployment insurance and high level of unemployment remain a concern, and are indications of the challenges many households are facing,” said Mike Fratantoni, MBA’s chief economist.

“While new forbearance requests remain low, particularly for Fannie Mae and Freddie Mac loans, the pace of exits from forbearance has declined for two straight weeks,” he said.

Leave a comment

Most Popular Articles

FHFA to make desktop appraisals permanent

Desktop appraisals, a temporary flexibility implemented in March 2020 amid lockdowns and social distancing, will become permanent, the FHFA said today.

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