Share of Mortgage Loans in Forbearance Holds Steady in April

According to the new Mortgage Bankers Association (MBA) Loan Monitoring Survey (LMS) released on Monday, the number of loans in forbearance as of April 30th remained unchanged from March, holding at 0.22% of servicers’ portfolio volume. The MBA estimates that 110,000 homeowners remain in forbearance plans. Mortgage servicers have provided forbearance to approximately 8.1 million borrowers since March 2020.

In April, the share of Fannie Mae and Freddie Mac loans in forbearance declined 1 basis point to 0.11%; Ginnie Mae loans in forbearance declined 1 basis point to 0.39%; and the forbearance share for portfolio loans and private-label securities (PLS) was unchanged at 0.31%.

In remarks accompanying the report, MBA Vice President of Industry Analysis Marina Walsh said:

“The number of loans in forbearance has remained stagnant for the first four months of 2024. While forbearance is still a viable option for homeowners needing temporary mortgage payment relief, its usage has diminished without a major natural disaster or labor market downturn. Moreover, the performance of servicing portfolios and post-forbearance workouts remains strong, despite some fluctuations from month-to-month.”