Update on GSE Pool-level Forbearance data

Earlier this month we discussed the new pool-level forbearance and delinquency data released by the GSE’s[1]. At that time, we noted that the delinquency data looked reasonable for May, but that the forbearance data fell short of other reported measures, particularly for Freddie Mac.

Run Underlying Query

Recently it was brought to our attention that the forbearance data for both Fannie Mae and Freddie Mac are reported with a 1-month lag[2]. In addition, Freddie Mac servicers are not required to report loans in forbearance if they are current[3]. The Mortgage Bankers Association reported that the forbearance rate for the GSE’s at the end of April was 5.85%[4], quite close to the figure reported by Fannie Mae.
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In coming months we will continue to comment on the progression of delinquencies and forbearance visible from this new data.​

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[1] https://www.recursionco.com/blog/new-gse-data
[2] See http://www.freddiemac.com/mbs/docs/covid_19_investor_faqs.pdf, question 5 p. 12 and            https://www.fanniemae.com/resources/file/mbs/pdf/single-family-mbs-disclosures-faqs.pdf, questions 42-44 pp. 8-9
[3] See http://www.freddiemac.com/mbs/covid-19/covid_19_faqs.html, question 3 under “Reporting and Disclosure”
[4] https://www.mba.org/2020-press-releases/may/share-of-mortgage-loans-in-forbearance-increases-to-754