Share of Mortgage Loans in Forbearance Decreases Slightly in January
Industry Update
February 20, 2024
Source: Mortgage Bankers Association
The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 1 basis point from 0.23% of servicers’ portfolio volume in the prior month to 0.22% as of January 31, 2024. According to MBA’s estimate, 110,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 8.1 million borrowers since March 2020.
In January 2024, the share of Fannie Mae and Freddie Mac loans in forbearance declined 2 basis points to 0.13%. Ginnie Mae loans in forbearance remained the same at 0.39%, and the forbearance share for portfolio loans and private-label securities (PLS) increased 1 basis point to 0.28%.
“The combination of a potential economic slowdown in 2024, and indications that consumer debt balances and delinquencies are on the rise[1], could lead to more homeowners struggling to make their mortgage payments and inquire about forbearance and available loan workout options,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Most pandemic-related protocols have sunset, which gives mortgage servicers different rules of engagement when it comes to assisting borrowers through loan forbearance or a loan workout.”
For full report, please click the source link above.