Business & Investment

“The share of mortgages in tolerance will drop to 5.20%.”

Along Calculated risk of 3/08/2021 04:00:00 PM

Note: This is as of February 28th.

From MBA: Mortgage share in tolerance drops to 5.20%

According to the latest Forbearance and Call Volume Survey of the Mortgage Bankers Association (MBA), the total number of loans currently in grace period has decreased by 3 basis points from 5.23% of the servicer’s portfolio volume last week. 5.20% as of February 28, 2021. According to MBA estimates 2.6 million homeowners have a tolerance plan..

In the last week of February, the pace of tolerance exits increased, resulting in a slight decrease in the total share of tolerance lending. This continues the trend reported in the previous month. Mike Fratantoni, Senior Vice President and Chief Economist, MBA, said: “Economic improvements, upcoming stimuli, and many homeowners who are tolerant of reaching the 12-month mark of the plan can all affect the overall share of tolerance in the coming months. “

“Although employment growth recovered sharply in February and the unemployment rate fell, there are still nearly 10 million unemployed, 4.1 million of the long-term unemployed, and 125,000 from January,” Fratantoni added. The number of people is increasing. Passing through the American Rescue Plan provides the support needed by homeowners who continue to struggle during these difficult times. “
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 in late March and early April, then has been declining, and has been declining almost slowly these days.

The MBA states: “Weekly total tolerance request as a percentage of service portfolio volume remained unchanged at 0.07% from the previous week.”

“The share of mortgages in tolerance will drop to 5.20%.” “The share of mortgages in tolerance will drop to 5.20%.”

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