The total number of loans in forbearance fell from 5.54% to 5.48% as of December 6, according to the Mortgage Bankers Association.
Fannie Mae and Freddie mac delinquent loans decreased to 3.26%, an improvement of 8 points. Ginnie Mae loans in forbearance decreased by 21 points to 7.68%
Despite a dramatic improvement in points, borrowers are still looking for relief, according to Mike Fratantoni, senior vice president and chief economist of MBA.
“New forbearance requests reached their highest level since the week ending August 2, and service call volume reached its highest level since the week ending April 19,” said Fratantoni. “Compared to the past two months, more and more homeowners coming out of forbearance are using a modification – a sign that they haven’t been able to fully get back on their feet, even though they’re working again.”
Fratantoni added that this shows an economic slowdown, with an increase in layoffs and long-term unemployment. The country’s unemployment rate fell at 6.7% in November, against 6.9% in October.
“Coupled with the latest increase in COVID-19 cases, it’s not surprising to see more homeowners seeking relief,” he said.
The share of forbearance for portfolio loans and distributor securities (PLS) increased by 19 points to 8.89%, while the percentage of forbearance for independent mortgage banking services decreased by four points to 5.98%.
The total weekly forbearance requests as a percentage of the volume of the service portfolio fell from 0.08% to 0.12%.
Measured as a percentage of the service portfolio, calls from call centers increased to 9.4% from 5.3% the previous week, according to the MBA report.