Shares of Mortgage Loans in Forbearance Decline Further in June, but 405,000 Homeowners Remain in Plans
Share of Mortgage Loans in Forbearance Decreases to 0.81% in June
According to the new monthly Mortgage Bankers Association’s (MBA) Loan Monitoring Survey (LMS), the total number of loans now in forbearance decreased by 4 basis points, from 0.855% of servicers’ portfolio volume in the prior month to 0.81% as of June 30, 2022. The MBA estimates that 405,000 homeowners remain in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 3 basis points to 0.35%. Ginnie Mae loans in forbearance decreased 1 basis points to 1.26%, and the forbearance share for portfolio loans and private-label securities (PLS) declined 18 basis points to 1.68%.
In a statement prepared to accompany the release of the June LMS, Marina Walsh, CMB, MBA’s Vice President of Industry Analysis, said:
“The overall forbearance rate in June stayed relatively flat with just a 4-basis-point decline from May. Borrowers continue to exit forbearance, but at a much slower pace than six or nine months ago. New forbearance requests are still trickling in, as permitted under the CARES Act, resulting in very little movement in the overall percentage of loans in forbearance.”
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