MBA survey shows spike in loans in forbearance, servicer call volume

The Mortgage Bankers Association on April 7 said requests to delay mortgage payments in the U.S. grew by 1,270% between the week of March 2 and the week of March 16, and another 1,896% between the week of March 16 and the week of March 30.

The numbers reflect the unprecedented, widespread mortgage forbearance already requested by borrowers affected by the spread of coronavirus (COVID-19).

The total number of loans in forbearance grew from 0.25% to 2.66% from March 2 to April 1, with mortgages backed by Ginnie Mae seeing the largest growth (from 0.19% to 4.25%). As of April 1, independent mortgage bank (IMB) servicers now have the largest share of loans in forbearance (3.45%), reflecting their focus on Federal Housing Administration (FHA) and Veterans Affairs (VA) home loan programs, and serving low- to moderate-income borrowers.

Hold times to servicer call centers increased to 17.5 minutes from under two minutes three weeks prior, according to the MBA. Call abandonment rates grew to 25% from 5% three weeks prior.

MBA’s survey data covers 22.4 million loans serviced as of April 1, representing almost 45% of the first mortgage servicing market. The sample size is expected to increase in the coming weeks as more servicers respond to requests for participation.