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 percent of servicers’ portfolio volume in August to 0.69 percent as of Sept. 30, 2022. According to MBA’s estimate, 345,000 homeowners remain in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased to 0.3 percent. Ginnie Mae loans in forbearance increased slightly to 1.33 percent, and the forbearance share for portfolio loans and private label securities decreased to 1.14 percent.
“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,” Marina Walsh, CMB, MBA’s vice president of industry analysis, said. “This dynamic in turn prevented any substantial improvement in the forbearance rate. The COVID-19 federal health emergency is still in effect and, in most cases, borrowers can still seek initial COVID-19 hardship forbearance.”
The survey also showed that of the cumulative forbearance exits for the period from June 1, 2020, through Sept. 30, 2022, at the time of forbearance exit 29.6 percent resulted in a loan deferral/partial claim; 18.3 percent were borrowers who continued to make their monthly payments during their forbearance period; 17.3 percent were borrowers who did not make all of their monthly payments and exited forbearance without a loss mitigation plan; 16 percent resulted in a loan modification; 11 percent resulted in a reinstatement, in which past-due amounts are paid back when exiting forbearance; and 6.6 percent resulted in loans paid off through either a refinance or by selling the home. The remaining 1.2 percent resulted in repayment plans, short sales, deed-in-lieu or other outcomes.