Loans in Forbearance Drop Under 2.90%

Loans in forbearance continued to fall, according to the Mortgage Bankers Association’s weekly survey…(MBA)

• Total number of loans now in forbearance fell 7 basis points to 2.89% for the week ending September 26th

• According to MBA’s estimate, 1.4 million homeowners are now in forbearance plans.

NOTE: Loans in forbearance have now fallen in 30 of the last 31 weeks.

Mike Fratantoni, MBA’s Senior Vice President and Chief Economist, said in a statement that loans in forbearance are exiting at a faster rate than we have seen recently, but it is about to get even faster…

• “While 1.4 million homeowners remained in forbearance as of September 26th, this number is expected to drop sharply over the next few weeks as many are reaching the 18-month expiration point of their forbearance terms…”

MORE INFO: Research shows just 7% of homeowners in forbearance have less than 10% equity after including 18 months of deferred payments, the potential for foreclosure activity persists regardless…(Black Knight)

• Looks like the housing market may be starting to slow. Black Knight’s Mortgage Monitor report also found that annual home price growth slowed from an all-time-high of 19.4% in July to 19% in August, marking the first decline in the rate of annual appreciation in 15 months, with daily tracking data for September suggesting further cooling is on the way.