Mortgage forbearances decline for the fourth consecutive week
July 14, 2020
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In today’s Daily Download episode, HousingWire covers a report from the Mortgage Bankers Association that claims the share of mortgage loans in forbearance has fallen for the fourth consecutive week.
For some background on today’s episode, here’s a summary of the article:
The share of mortgage loans in forbearance fell for the fourth week in a row to 8.18% according to the Mortgage Bankers Association’s Forbearance and Call Volume survey. The MBA approximates 4.2 million homeowners are now in forbearance.
Broken down by investor type, Fannie Mae and Freddie Mac loans fell for the fifth week in a row to 6.07%, according to the report.
Ginnie Mae mortgages – primarily backed by the Federal Housing Administration and the Veterans Administration – fell to 10.56%. As loans were brought out of Ginnie Mae pools and into bank portfolios, the share of portfolio loans and private-label securities in forbearance increased to 10.93%.
“These buyouts enable servicers to stop advancing principal and interest payments, and to work with borrowers in the hope that they can begin paying again before they are re-securitized into Ginnie Mae pools,” said Mike Fratantoni, MBA’s senior vice president and chief economist.
Following the main story, HousingWire covers data from Redfin that indicates more than half of home offers were in a bidding war in June and an announcement from Apple that it will spend $400 million this year to support affordable housing in California.
The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.
HousingWire articles covered in this episode:
