The total coronavirus-related mortgages in forbearance grew by 55 basis points between April 20 and 26, in lockstep with rising but slowed unemployment claims, according to the Mortgage Bankers Association.
An estimated 3.8 million mortgage loans sit in forbearance plans as of April 26. About 7.54% of all outstanding mortgages went into forbearance, compared to 6.99% from
The share of loans in forbearance at independent mortgage bank servicers saw a greater increase, growing to 7.13% from 6.52% over that period. At depositories, that share increased to 8.41% from 7.87%.
"With millions more Americans filing for unemployment over the week, the level of job market distress continues to worsen," Mike Fratantoni, the MBA's senior vice president and chief economist, said in a press release. "That is why we expect that the share of loans in forbearance will continue to grow, particularly as new mortgage payments come due in May."
Forbearance requests as a percentage of servicing portfolio volume declined 51 basis points to 0.63% from 1.14% for the week ended April 19. But call center volume as a percentage of portfolio volume decreased to 7.2% from 10% the previous week.
The Biden administration once again extended the pause on student loan payments enacted to help borrowers during the COVID-19 pandemic, this time through the end of August.
The two states' combined plans amount to over $1.5 billion of the Homeowner Assistance Fund included within the American Rescue Plan Act , which was passed a year ago.
An uptick in pandemic-related payment suspensions reflecting new or restarted plan activity previously occurred as the omicron variant spread, but activity has since subsided.
The share of conforming mortgages, those purchased by Fannie Mae and Freddie Mac, in forbearance rose to 5.85% from 5.46%. The share of forbearance of private-label securities and portfolio loans — products which were not addressed by the coronavirus relief act — jumped to 8.3% from 7.52% one week prior.
The MBA's sample for this week's survey includes a total of 56 servicers broken down by 31 independent mortgage bankers, 23 depositories, plus two subservicers. By unit count, the respondents represented nearly 77% of the outstanding first-lien mortgages.
The MBA remains hopeful the housing industry can be the rising tide that lifts all ships within the economy.
"As states across the country begin to reopen their economies, a silver lining we are seeing is indications of increased activity in the housing market, including more purchase applications in some markets," Fratantoni said. "We are hopeful that the housing market can eventually contribute to a broader rebound in economic activity, which would then begin to reverse the unprecedented job losses experienced during this crisis."
