Shares of Mortgage Loans in Forbearance Unchanged in November

According to the new monthly Mortgage Bankers Association (MBA) Loan Monitoring Survey (LMS), the total number of loans in forbearance was unchanged from October’s reading of 0.70%, as of November 30, 2022. The MBA estimates that 350,000 homeowners are now in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance increased 1 basis point to 0.32%. Ginnie Mae loans in forbearance increased by 5 basis point to 1.46%. The forbearance share for portfolio loans and private-label securities (PLS) declined 6 basis points to 0.97%.

MBA’s Loan Monitoring Survey requests that servicers report all loans in forbearance regardless of the borrower’s stated reason—whether pandemic-related, due to a natural disaster, or another cause.

Providing additional background and greater insight into the November report, Marina Walsh, CMB, MBA’s Vice President of Industry Analysis, said:

“There were pockets of weakness in the November data, despite the forbearance rate remaining unchanged and the overall loan performance of serviced loans staying mostly flat. The forbearance rate for Ginnie Mae loans increased for the fourth consecutive month, and the overall performance of the portfolio decline for the third consecutive month. Furthermore, the performance of government post-forbearance workouts also weakened.

With many indicators pointing to a recession and higher unemployment in 2023, many of the most vulnerable homeowners will be those with FHA, VA, or other government loans. Loss mitigation options may help ease the financial hardship for these homeowners.”