After falling slightly, the number of leniency-related coronavirus-related mortgages rose 1 basis point between December 7 and December 13, according to the Mortgage Bankers Association.
Forbearance home loans account for 5.49% – about 2.7 million homeowners – of all outstanding mortgages, up from 5.48% the week earlier. The share of forborne loans from independent mortgage lenders decreased from 5.98% to 5.95, while the depositaries increased the average from 5.38% to 5.41%.
The indulgence rate has been modest over the past five weeks, with neither growth nor decline above 6 basis points. Although COVID-19 infections have risen sharply lately, the increase this week wasn't unanticipated.
"Additional restrictions on businesses and rising COVID-19 cases are fueling renewed layoffs and other signs of economic slowdown. These worrying trends are likely to lead more homeowners to seek relief," said Mike Fratantoni, senior vice president and the MBA's chief economist said in a press release. "In addition, indulgence requests from Ginnie Mae borrowers hit their highest level since the week ended June 14th."
Ginnie Mae Forbearance Loans – Federal Housing Administration, Department of Veterans Affairs, and U.S. Department of Agriculture – rose from 7.68% to 7.79%.
Compliant mortgages – those bought by Fannie Mae and Freddie Mac – continue to lead the recovery, going from 3.25% from 3.26%. Meanwhile, private label stocks and portfolio loans – products not regulated under the Coronavirus Relief Act – fell from 8.89% to 8.76%.
18.78% of all forborne mortgages are in the initial forbearance phase, while 78.54% have moved to extended plans. The remaining 2.69% re-entered in forbearance after the previous exit.
Forbearance requests as a percentage of service portfolio volume remained unchanged from the previous week at 0.12%. After a survey low, the call center volume as a percentage of the portfolio volume fell from 9.4% to 8%.
The MBA sample for this week's survey includes a total of 49 servicers with 26 independent mortgage lenders and 21 custodians. The sample also included two subservicers. Based on the number of units, respondents accounted for around 74% or 37.2 million of the outstanding first liens.