Forbearance dropping for a second week in a row | Mortgage Broker Largo
Didier Malagies • June 30, 2020
shares of Mortgage Forebearance dips for the second straight week
Share of Mortgages in Forbearance Dips for Second Straight Week
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Source: Inman
Written by: Jim Dalrymple Ii
In a world with precious little good news, here’s a small ray of sunshine: The number of mortgages in forbearance has dipped for the second straight week.
That’s according to a new report, out Monday, from the Mortgage Bankers Association (MBA). The report found that as of June 21, the total number of loans in forbearance dipped by 1 basis point, from 8.48 percent to 8.47 percent. In total, the MBA estimates that those numbers meant 4.2 million homeowners were in forbearance programs — down from 4.3 million earlier in June.
In a statement, MBA Chief Economist Mike Fratantoni added that the “overall share of loans in forbearance declined for the second week in a row.” Fratantoni also said that 17 percent of borrowers who went into forbearance have asked for an extension.
Overall, the report continues a running theme of modest-but-good news in the mortgage market. In the early days of the coronavirus pandemic, which shut down much of the economy, the number of loans in forbearance spiked.
However, since mid April, the numbers have been relatively flat. And while the recent dips have been modest, the lack of spikes at least suggests that things are not getting substantially worse.
For Fannie Mae and Freddie Mac loans, specifically, the news from the latest MBA report is even better, with the number in forbearance dropping for the third week in a row to 6.26 percent.
However, the number of Ginnie Mae loans in forbearance remained flat as of June 21.
The report is based on a sample of 54 mortgage servicers, and represents data on 38.2 million loans.
One caveat to the report is that it doesn’t reflect data from the most recent seven days — which in this case have been characterized by spikes in the number of coronavirus cases in some states. As a result, it remains to be seen what kind of impact those recent spikes will have on the mortgage market.
However, Fratantoni at least framed the numbers as a positive sign.
“The level of forbearance requests remains quite low as of mid-June,” he explained. “The rebound in the housing market is likely one of the factors that is providing confidence to both potential homebuyers and existing homeowners during these troubled times.”
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We're excited to share a major update that will make the homebuying process more secure and less stressful. President Donald Trump recently signed the Homebuyers Privacy Protection Act of 2025 into law. This bill is a significant victory for the real estate industry, as it directly addresses the problem of unwanted calls, texts, and emails that often flood clients upon mortgage application. What's Changing? For years, many borrowers have experienced a barrage of unsolicited contact from different lenders immediately after their mortgage application. This happens because of "trigger leads"—a process where credit reporting agencies sell information to other companies once a credit inquiry is made. Effective March 5, 2026, this new law will put a stop to this practice. It will severely limit who can receive client contact information, ensuring client privacy is protected. A credit reporting agency will only be able to share trigger lead information with a third party if: • Clients explicitly consent to the solicitations. • The third party has an existing business relationship. This change means a more efficient, respectful, and responsible homebuying journey. We are committed to a seamless process and will keep you informed of any further developments as the effective date approaches. In the meantime, you can use the information below to inform clients how to proactively protect themselves from unwanted solicitations. Opting Out: • OptOutPrescreen.com: You can opt out of trigger leads through the official opt-out service, OptOutPrescreen.com. • Do Not Call Registry: You can also register your phone number with the National Do Not Call Registry to reduce unsolicited calls. • DMA.choice.org: For mail solicitations, you can register with DMA.choice.org to reduce promotional mail. Didier Malagies nmls212566 DDA Mortgage nmls324329
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