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Monday, December 19, 2022

MBA Survey: "Share of Mortgage Loans in Forbearance Remains Flat at 0.70% in November"

by Calculated Risk on 12/19/2022 04:00:00 PM

Note: This is as of November 30th.

From the MBA: Share of Mortgage Loans in Forbearance Remains Flat at 0.70% in November

The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance remained flat relative to the prior month at 0.70% as of November 30, 2022. According to MBA’s estimate, 350,000 homeowners are in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance increased 1 basis point to 0.32%. Ginnie Mae loans in forbearance increased 5 basis points to 1.46%, and the forbearance share for portfolio loans and private-label securities (PLS) declined 6 basis points to 0.97%.

“There were pockets of weakness in the November data, despite the forbearance rate remaining unchanged and the overall loan performance of serviced loans staying mostly flat,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “The forbearance rate for Ginnie Mae loans increased for the fourth consecutive month, and the overall performance of the portfolio declined for the third consecutive month. Furthermore, the performance of government post-forbearance workouts also weakened.”

Added Walsh, “With many indicators pointing to a recession and higher unemployment in 2023, many of the most vulnerable homeowners will be those with FHA, VA, or other government loans. Loss mitigation options may help to ease the financial hardship for these homeowners.”
emphasis added
MBA Forbearance Survey Click on graph for larger image.

This graph shows the percent of portfolio in forbearance by investor type over time.

The share of forbearance plans had been decreasing, although the percent in forbearance was unchanged in November. At the end of November, there were about 350,000 homeowners in forbearance plans.