United States abstention rate, measuring the share of mortgages with payment suspensions, increased for the second consecutive week from 5.48% to 5.54%, depending on Association of Mortgage Bankers. The MBA estimates that the number of homeowners of some form of mortgage forbearance rose from 2.7 million to 2.8 million last week.
Prior to the recent increases, the abstention rate in the United States had either fallen or remained unchanged as abstentions fell for the first time in the United States. series history June 22. The MBA said more people entered tolerance than exited this week.
While the rate of abstention increased for all types of loans and management services, for the first time in 25 weeks, the share of Fannie Mae and Freddie mac loans in forbearance increased to 3.36%, a gain of 1 basis point. The abstention rate for Ginnie mae loans, which include loans guaranteed by the Federal Housing Administration, also gained 10 basis points to 7.83%.
The percentage of loans forbidden for deposit managers rose 3 basis points to 5.47%, while the percentage for independent mortgage bank managers rose 9 basis points to settle at 6.03%.
The forbearance share of portfolio loans and private label securities peaked last week after rising 15 basis points to 8.63%.
“The increase in new forbearance requests may be the result of additional outreach to homeowners who previously had not taken advantage of forbearance opportunities,” said Mike Fratantoni, senior vice president and chief economist of MBA. “However, the slowdown in the exit rate to a new lower survey further shows that borrowers still on hold are increasingly challenged by renewed restrictions on economic activity to contain the surge in COVID-19 cases. . “
The type of difficulties borrowers face may not be quantifiable. However, among the cumulative forbearance exits from June 1 to November 22, the number of borrowers who continued to make their monthly payments during their forbearance period decreased slightly from 30.5% to 30. , 3%.
The MBA also revealed that while the forbearance exits were delayed, the total number of loans in the forbearance extensions increased to 77.42% as borrowers opted to take the relief beyond the initial six-month period.
The number of borrowers re-asking for relief was also of concern, Fratantoni said, pushing the share of forbearance cash to 2.24 percent from 1.92 percent the week before.
The deadline for receiving support is fast approaching. The deadline for single-family homeowners to apply for forbearance ends December 31, 2020 for loans supported by the FHA and the Federal Housing Finance Agency – the same day foreclosure moratoriums are also about to expire.