Loans in Forbearance Decrease
The Mortgage Bankers Association’s latest Forbearance Survey revealed that the total number of loans now in forbearance decreased to start the year (Mortgage Bankers Association)
- The total number of loans now in forbearance decreased by 7 basis points to 5.46% from 5.5.3% the week before
- According to MBA’s estimate, 2.7 million homeowners are in forbearance plans.
STAGES: There is still a large imbalance between new and older loans in forbearance. 18.49% of total loans in forbearance are in the initial forbearance plan stage, while 79.85% are in a forbearance extension.
A PROBLEM: Mike Fratantoni, MBA’s Senior Vice President and Chief Economist, said in a statement, “The data show that those homeowners who remain in forbearance are more likely to be in distress, with fewer continuing to make any payments and fewer exiting forbearance each month.”
This piggybacks on the data we saw on Friday from the Urban Institute that reported that nearly 14 percent of renters, or 9.5 million renters, reported problems paying rent in the previous 30 days. A recently passed COVID relief bill extends the federal eviction moratorium to January 31 and provides $25 billion in rental assistance, but many economists think more needs to be done to avoid the so-called “eviction crisis”