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Monday, July 17, 2023

MBA Survey: "Share of Mortgage Loans in Forbearance Decreases to 0.44% in June"

by Calculated Risk on 7/17/2023 04:16:00 PM

Interesting - the states that have seen price decreases (in the West) have the most current loans (see bottom).  There is no financial distress related to price decreases.

From the MBA: Share of Mortgage Loans in Forbearance Decreases to 0.44% in June

The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 5 basis points from [0.49%] of servicers’ portfolio volume in the prior month to [0.44%] as of June 30, 2023. According to MBA’s estimate, 220,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 7.9 million borrowers since March 2020.

In June 2023, the share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 0.21%. Ginnie Mae loans in forbearance decreased 13 basis points to 0.93%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased 6 basis points to 0.52%.

“Mortgage forbearance has declined because most homeowners have maintained or improved their financial health,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Recent reporting by the U.S. Bureau of Labor Statistics shows continued job growth in June, and a 3.6 percent unemployment rate. The employment situation tracks with homeowners’ ability to make mortgage payments.”
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 has been decreasing, declined to 0.44% in June from 0.49% in May.

At the end of June, there were about 220,000 homeowners in forbearance plans.

MBA Mortgages Current by StateThe second graph shows the percent of mortgages current by state.

From the MBA:
• Total loans serviced that were current (not delinquent or in foreclosure) as a percent of servicing portfolio volume (#) remained flat at 96.12% (on a non-seasonally adjusted basis) in June 2023 compared to May 2023.

• The five states with the highest share of loans that were current as a percent of servicing portfolio: Washington, Idaho, Colorado, Oregon, and California.

• The five states with the lowest share of loans that were current as a percent of servicing portfolio: Mississippi, Louisiana, New York, Indiana, and West Virginia.