Share of Mortgage Loans in Forbearance Increases to .47% in October
Industry Update
November 18, 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 increased to 0.47% as of October 31, 2024. According to MBA’s estimate, 235,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 8.4 million borrowers since March 2020.
The share of Fannie Mae and Freddie Mac loans in forbearance increased 7 basis points to 0.20% in October 2024. Ginnie Mae loans in forbearance increased by 30 basis points to 1.06%, and the forbearance share for portfolio loans and private-label securities (PLS) increased 6 basis points to 0.43%.
“Approximately 65,000 more borrowers are in forbearance compared to one month ago,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “While forbearances are still low compared to the height of the pandemic, the monthly increase in forbearances is the largest since May 2020 and likely driven by the effects of Hurricanes Helene and Milton.”
Added Walsh, “Of those loans in forbearance, 45 percent are related to natural disasters while the remaining 55 percent are primarily related to temporary hardship such as job loss, death, divorce, or disability. Notwithstanding the storms, some borrowers may be experiencing other economic distress. October marks the fifth consecutive month in which the forbearance rate has increased, and the performance of overall servicing portfolios and loan workouts weakened compared to this time one year ago.”
For full report, please click the source link above.