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 rate finally hits pre-pandemic levels

The total number of loans in forbearance declined by 4 bps to 2.96%, according to the MBA

Servicers’ forbearance portfolio volume dropped last week to a level below 3.00% for the first time in 18 months. The total number of loans in forbearance decreased by four basis points to 2.96% as of Sept. 19, according to the Mortgage Bankers Association (MBA).      

The most notable decline was in the portfolio loans and private-label securities (PLS) category, dipping by four basis points to 6.91%, after a drop of 32 bps in the prior week.

For depository servicers, the percentage also declined four basis points, but to 3.06%. The share of independent mortgage bank loans in forbearance fell one basis point to 3.24%.  

Fannie Mae and Freddie Mac loans dropped by three basis points to 1.44%. Meanwhile, Ginnie Mae loans in forbearance increased 3 bps, at 3.42% of servicers‘ portfolio volume.  

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. 19, 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 the share of loans in forbearance dropped below 3% for the first time since March 2020, but Ginnie Mae loans rose slightly.

“New forbearance requests and re-entries continue to run at a higher rate for Ginnie Mae loans as well as for portfolio and PLS loans, which include many delinquent FHA, VA, and USDA loans that have been bought out of Ginnie Mae pools.”

The survey shows that 12.0% of total loans were in the initial stage last week, and 79.3% were in a forbearance extension. The remaining 8.7% were re-entries.

Servicer call volume increased to 7.9%, up from 6.3% the week prior. The average call length slightly decreased, from 8.3 minutes to 8.2 minutes.

Total requests remained at 0.05% of servicing portfolio volume, while exits represented 0.10% of the total – in the previous week, the share was 0,16%, the report said.

During the last 15 months, MBA’s data revealed that 28.7% of exits resulted in a loan deferral or partial claim. Also, 21.8% represented borrowers who continued to pay during the forbearance period.

However, 16.3% were borrowers who did not make their monthly payments and did not have a loss mitigation plan.

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