The Mortgage Bankers Association (MBA) estimated 470,000 homeowners remain in an active forbearance plan bringing the total number of mortgage loans in forbearance below 1 percent. This is according to the MBA’s monthly Loan Monitoring Survey.
According to the survey, the total number of loans in forbearance decreased from 1.05 percent in March, to 0.94 percent as of April 30. The share of Fannie Mae and Freddie Mac loans in forbearance dropped to 0.43 percent. Ginnie Mae loans in forbearance decreased to 1.29 percent; and the forbearance share for portfolio loans and private-label securities declined to 2.15 percent.
“With the number of borrowers in forbearance decreasing to less than half a million, the pace of monthly forbearance exits reached its lowest level since MBA started tracking exits in June 2020,” Marina Walsh, MBA’s vice president of industry analysis, said. “Servicers are expected to continue making small incremental inroads to the remaining loans in forbearance.”
The percentage of borrowers who were current on their mortgage payments reached its highest level of 2022 in April, increasing to 95.64 percent.
“The best indicator of loan performance is overall national employment,” Walsh said. “The U.S. unemployment rate is still below 4 percent, leaving borrowers in a good position to make their monthly mortgage payments.”
The five states with the highest share of loans that were current as a percent of servicing portfolio were Idaho, Washington, Colorado, Utah and Oregon.
The five states with the lowest share of loans that were current as a percent of servicing portfolio were Louisiana, Mississippi, West Virginia, New York and Oklahoma.