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WASHINGTON, D.C. (April 22, 2024) – The Mortgage Bankers Association’s (MBA) month-to-month Loan Monitoring Survey revealed that the whole variety of loans now in forbearance remained unchanged at 0.22% as of March 31, 2024. According to MBA’s estimate, 110,000 owners are in forbearance plans. Mortgage servicers have offered forbearance to roughly 8.1 million debtors since March 2020.
In March 2024, the share of Fannie Mae and Freddie Mac loans in forbearance remained at 0.12%. Ginnie Mae loans in forbearance stayed at 0.40%, and the forbearance share for portfolio loans and private-label securities (PLS) elevated 2 foundation factors to 0.31%.
“For the past three months, the number of loans in forbearance has held steady,” stated Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “The current labor market is showing resilience, minimizing the need for mortgage forbearance. However, life events and temporary hardships still happen, regardless of employment conditions, which may explain why we have reached a floor in the forbearance rate.”
Key Findings of MBA’s Loan Monitoring Survey – March 1 to March 31, 2024
- Total loans in forbearance remained unchanged in March 2024 relative to February 2024 at 0.22%.
- By investor kind, the share of Ginnie Mae loans in forbearance remained the identical relative to the prior month at 0.40%.
- The share of Fannie Mae and Freddie Mac loans in forbearance remained the identical relative to the prior month at 0.12%.
- The share of different loans (e.g., portfolio and PLS loans) in forbearance elevated relative to the prior month: from 0.29% to 0.31%.
- Loans in forbearance as a share of servicing portfolio quantity (#) as of March 31, 2024:
- Total: 0.22% (earlier month: 0.22%)
- Independent Mortgage Banks (IMBs): 0.25% (earlier month: 0.25%)
- Depositories: 0.23% (earlier month: 0.23%)
- By cause, 75.2% of debtors are in forbearance for causes equivalent to a short lived hardship brought on by job loss, loss of life, divorce, or incapacity; whereas 13.2% of debtors are in forbearance due to COVID-19. Another 11.6% are in forbearance due to a pure catastrophe.
- By stage, 57.2% of whole loans in forbearance are within the preliminary forbearance plan stage, whereas 25.7% are in a forbearance extension. The remaining 17.1% are forbearance re-entries, together with re-entries with extensions.
- Total loans serviced that had been present (not delinquent or in foreclosures) as a p.c of servicing portfolio quantity (#) elevated to 95.92% (on a non-seasonally adjusted foundation) in March 2024, up 19 foundation factors from 95.73% in February 2024 and down 43 foundation factors from 96.35% one 12 months in the past.
- The 5 states with the best share of loans that had been present as a p.c of servicing portfolio: Idaho, Colorado, Washington, California, and Montana.
- The 5 states with the bottom share of loans that had been present as a p.c of servicing portfolio: Louisiana, Mississippi, Indiana, New York, and Illinois.
- Total accomplished mortgage exercises from 2020 and onward (compensation plans, mortgage deferrals/partial claims, mortgage modifications) that had been present as a p.c of whole accomplished exercises had been 75.48% in March 2024, down 20 foundation factors from 75.68% the prior month and down 122 foundation factors from 76.70% one 12 months in the past.
The subsequent publication of the Monthly Loan Monitoring Survey (LMS) will probably be launched on Monday, May 20, 2024, at 4:00 p.m. ET.
