Note: This is as of July 31st.
From the MBA: Share of Mortgage Loans in Forbearance Decreases to 0.74% in July
The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 7 basis points from 0.81% of servicers’ portfolio volume in the prior month to 0.74% as of July 31, 2022. According to MBA’s estimate, 370,000 homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 1 basis point to 0.34%. Ginnie Mae loans in forbearance remained the same relative to the previous month at 1.26%, and the forbearance share for portfolio loans and private-label securities (PLS) declined 34 basis points to 1.34%.
“July continued the ongoing trend in recent months of most of the forbearance exits coming from borrowers with portfolio loans and private label security loans,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “There has been very little change in the forbearance rate for Fannie Mae, Freddie Mac, and Ginnie Mae loans during the past three months, perhaps indicating that we have reached a floor, with loans entering forbearance about equal to loans exiting forbearance for these loan types.”
emphasis addedClick 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 July, there were about 370,000 homeowners in forbearance plans.