The number of mortgages for which borrowers defer payments has risen sharply, according to new data from a financial industry group.
For the week ending April 12, 5.95% of home loans in agent portfolio volume were on forbearance, up from 3.74% the week before, according to the latest forbearance and call volume survey of the Mortgage Bankers Association. The group’s survey represents nearly 77% of the first mortgage management market, or 38.3 million loans.
“With more than 22 million Americans asking unemployment Over the past month, homeowners have contacted their mortgage agents to request relief, which has resulted in a sharp increase in the share of delinquent loans in all types of loans, ”said Mike Fratantoni, senior vice president and MBA chief economist, in a statement.
While mortgage services still saw a high level of forbearance requests in the second week of April, Fratantoni said, borrower calls fell to 8.8% of the service portfolio volume, from 14. , 4%. The number of abstention requests also fell during the week, and the the time people waited to reach a repairman also fell in the second week of the month – a change from the trend in previous weeks.
But more requests for help are likely underway.
“As the closures and associated job losses will continue in the coming weeks, forbearance requests will likely increase as the payment due dates approach in May,” Fratantoni said.
The number of loans that have gone into forbearance has risen sharply as the Covid-19 pandemic continues to force the closure of businesses, public spaces and schools. For example, for the week of March 2, before government-imposed closings in the United States, only 0.25% of loans were in arrears, according to MBA.
Write to Marie Diduch at [email protected]