Latest News

MBA Survey: "Share of Mortgage Loans in Forbearance Decreases to 0.69% in September"


by Calculated Risk on 10/17/2022 04:00:00 PM

Note: This is as of September 30th.

From the MBA: Share of Mortgage Loans in Forbearance Decreases to 0.69% in September

The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 3 basis points from 0.72% of servicers’ portfolio volume in the prior month to 0.69% as of September 30, 2022. According to MBA’s estimate, 345,000 homeowners are in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 0.30%.
Ginnie Mae loans in forbearance increased 1 basis point to 1.33%, and the forbearance share for portfolio
loans and private-label securities (PLS) declined 12 basis points to 1.14%.

“The overall number of loans in forbearance dropped in September, but the pace of forbearance exits
slowed to a new survey low and new forbearance requests continued to come in. This dynamic in turn
prevented any substantial improvement in the forbearance rate,” said Marina Walsh, CMB, MBA’s Vice
President of Industry Analysis. “The COVID-19 federal health emergency is still in effect and in most
cases, borrowers can still seek initial COVID-19 hardship forbearance.”

Added Walsh, “In the near-term, the number of loans in forbearance will likely increase for another reason
– the recent devastation caused by Hurricane Ian in Florida, South Carolina, and other states. MBA’s
Loan Monitoring Survey requests that servicers report all loans in forbearance regardless of the
borrower’s stated reason – whether pandemic-related, due to a natural disaster, or another cause.”
emphasis added

Click on graph for larger image.

This graph shows the percent of portfolio in forbearance by investor type over time.

The share of forbearance plans is decreasing, and, at the end of September, there were about 345,000 homeowners in forbearance plans.

The New York Post: Most CEOs are bracing for a brief, shallow recession in the U.S. and something much worse in Europe: survey

Previous article

Lawler: Early Read on Existing Home Sales in September; CAR Predicts Home Prices to Decline 8.8% in 2023!

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News