US Mortgage Loans in Forbearance Increase for Sixth Consecutive Month in November

On December 23, the Mortgage Bankers Association (MBA) released its monthly Loan Monitoring Survey for November. As of November 30, the total number of loans in forbearance increased 0.50%, with an estimated 250,000 homeowners in a forbearance plan. MBA reports that since March 2020, approximately 8.5 million borrowers have been provided forbearance.

The share of Fannie Mae and Freddie Mac loans in forbearance increased 1 basis point to 0.21% in November; Ginnie Mae loans in forbearance increased by 5 basis points to 1.11%; and the forbearance share for portfolio loans and private-label securities (PLS) decreased 1 basis point to 0.42%.

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

“The overall mortgage forbearance rate increased 3 basis points in November and has now risen for six consecutive months. By investor type, Ginnie Mae loans are showing the greatest variance, with an increase of 72 basis points over the six-month period. That is compared to 11 basis points for Fannie Mae and Freddie Mac Loans and portfolio and PLS loans, respectively.

There is some weakening in performance of servicing portfolios and loan workouts compared to one year ago. In the wake of natural disasters and slowing in the labor market, borrowers with government loans tend to be impacted more than conventional borrowers.”