MBA Survey: Share of Mortgage Loans in Forbearance Holds Steady at 0.22% in February - InvestingChannel

MBA Survey: Share of Mortgage Loans in Forbearance Holds Steady at 0.22% in February

From the MBA: Share of Mortgage Loans in Forbearance Holds Steady at 0.22% in February

The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance remained unchanged at 0.22% as of February 29, 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 February 2024, the share of Fannie Mae and Freddie Mac loans in forbearance declined 1 basis point to 0.12%. Ginnie Mae loans in forbearance increased by 1 basis point to 0.40%, and the forbearance share for portfolio loans and private-label securities (PLS) increased 1 basis point to 0.29%.

“The performance of servicing portfolios and loan workouts improved in February, as borrowers benefitted from tax refunds, the extra day in the month to submit their payments, and continued resilience in the job market,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Only around 110,000 loans nationwide remain in a forbearance plan, with little movement this month. The pandemic’s impact has waned, with only 16 percent of borrowers in forbearance because of COVID-19, compared to 72 percent for temporary personal hardships and 12 percent for natural disasters.”
emphasis added

At the end of February, there were about 110,000 homeowners in forbearance plans.

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