The relationship between forbearance and home equity
In today’s Daily Download episode, HousingWire Digital Producer Alcynna Lloyd covers a report from the Mortgage Bankers Association that states the share of mortgages in forbearance has now risen to 8.5%.
For some background on the story, here’s a summary of the article:
Almost 4.3 million mortgages were in forbearance during May’s final week, representing 8.53% of outstanding home loans, the MBA said on Monday.
The numbers increased from 4.2 million mortgages in the prior week, which accounted for an 8.46% share, MBA said.
Private-label loans led the increase, rising to a 10% share from 9.67%, the report said. The forbearance share for mortgages backed by Fannie Mae and Freddie Mac rose to 6.4% from 6.39%, while the percentage for loans backed by the Federal Housing Administration and the Veterans Administration increased to 11.83% from 11.82%.
“While servicers reported only a 1-basis-point increase in the forbearance share for GSE and Ginnie Mae loans, the increase for private-label securities and portfolio loans rose to over 10 percent, which is higher than the rate on GSE loans,” said Mike Fratantoni, MBA’s chief economist.
Following the main story, HousingWire covers a TCPA ruling from the U.S. Court of Appeals for the Ninth Circuit in San Francisco to block certain debt calls, a report that claims renters may be less likely to renew their lease after the COVID-19 pandemic passes, and data from Black Knight that claims only 1 in 10 borrowers in forbearance is equity poor.
The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.
HousingWire articles covered in this episode: