Business & Investment

“The share of mortgages in tolerance drops to just 3.47%.”

NS Calculated risk of August 2, 2021 4:00 pm

Note: This is as of July 25th.

From MBA: Mortgage share in tolerance drops slightly to 3.47%

The latest Mortgage Bankers Association (MBA) Forbearance and Call Volume Survey reveals that the total number of currently deferred loans has fallen by one basis point from 3.48% of the servicer’s portfolio volume last week. As of July 25, 2021, it was 3.47%. MBA estimates that 1.74 million homeowners are in a tolerance plan..

Fannie Mae and Freddie Mac’s tolerant loan share fell 2 basis points to 1.79%. Mortgage vault Genie May loans decreased 5 basis points to 4.30%, and portfolio loans and own-brand securities (PLS) mortgage lending increased 6 basis points to 7.44%. The percentage of delinquent loans for independent mortgage bank (IMB) services decreased by 1 basis point to 3.67%, and the percentage of delinquent loans for deposit servicers decreased by 2 basis points to 3.59%.

“The exit of the mortgage is still low, with more demand for new mortgages, especially for Genie May and portfolios and PLS loans. The end result is a slight further decrease in the share of forgiving loans. “We did,” said Mike Fratantoni, Senior Vice President and Chief Economist at MBA. “In recent weeks, the total number of tolerant loans has changed little, but tolerance re-deposits have increased, reaching 7.2% this week. Recent economic data continues to show improvement, but tolerance It is clear that many homeowners still need the relief provided. ”

Emphasis added

Click the graph to see the enlarged image.

This graph shows the percentage of portfolio tolerance by investor type over time. Most of the increase was from late March to early April 2020, and has been on a downward trend since then.

The MBA states: “Weekly total tolerance requirements as a percentage of service portfolio volume increased compared to the previous week: 0.04% to 0.06%.”

“The share of mortgages in tolerance drops to just 3.47%.” “The share of mortgages in tolerance drops to just 3.47%.”

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