Loans in Forbearance Decline in New Mortgage Bankers Association Loan Monitoring Survey

The Mortgage Bankers Association (MBA) today released its new monthly Loan Monitoring Survey (LMS), which tracks the total number of loans now in forbearance. According to the LMS, the total number of loans in forbearance in November declined by 39 basis points from 2.6% of servicers’ portfolio in the month prior to 1.67% as of November 30, 2021. The MBA estimates that 835,000 homeowners are still in the forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance decreased 16 basis points to 0.76%. Ginnie Mae loans in forbearance decreased 42 basis points to 2.10%. The forbearance share for portfolio loans and private-label securities (PLS) declined 106 basis points to 3.94%.

Total loans serviced that were current (not delinquent or in foreclosure) as a percent of servicing portfolio volume (#) rose to 94.58% in November from 94.32% in October (on a non-seasonally adjusted basis). Total completed loan workouts from 2020 and onward (repayment plans, loan deferrals/partial claims, loan modifications) that were current as a percent of total completed workouts declined to 83.69% last month from 84.04% in October.

In a statement prepared to accompany the November LMS, Marina Walsh, CMB, MBA’s Vice President of Industry Analysis said, “The share of loans in forbearance in November declined — albeit at a slower pace than October — as borrowers continued to near the expiration of their forbearance plans and moved into permanent loan workout solutions.”