Share of Mortgage Loans in Forbearance Decreases to 0.55% in March

April 17, 2023 Loan Monitoring Survey MBA Research Press Release Residential Weekly Applications Survey


Falen Taylor

(202) 557-2771

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WASHINGTON, D.C. (April 17, 2023) – The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 5 basis points from 0.60% of servicers’ portfolio volume in the prior month to 0.55% as of March 31, 2023. According to MBA’s estimate, 275,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 7.8 million borrowers since March 2020.

In March 2023, the share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 0.26%. Ginnie Mae loans in forbearance decreased 10 basis points to 1.18%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased 10 basis points to 0.68%.

“As the COVID-19 national emergency draws to a close, the number of loans in forbearance continues to drop,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Mortgage performance remains strong with the percentage of borrowers who were current on their mortgage payments and post-forbearance workouts increasing in March.” 

Adds Walsh, “MBA’s forecast still calls for a recession in 2023, which may change the current performance levels, but credit quality is generally good and many borrowers facing financial hardship can now access enhanced loss mitigation options that resulted from successes of pandemic-related policies[1].”


Key Findings of MBA's Loan Monitoring Survey – March 1 to March 31, 2023

  • Total loans in forbearance decreased by 5 basis points in March 2023 relative to February 2023: from 0.60% to 0.55%.
  • By investor type, the share of Ginnie Mae loans in forbearance decreased relative to the prior month: from 1.28% to 1.18%.
  • The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative to the prior month: from 0.28% to 0.26%.
  • The share of other loans (e.g., portfolio and PLS loans) in forbearance decreased relative to the prior month: from 0.78% to 0.68%.
  • Loans in forbearance as a share of servicing portfolio volume (#) as of March 31, 2023:
  • Total: 0.55% (previous month: 0.60%)
  • Independent Mortgage Banks (IMBs): 0.74% (previous month: 0.81%)
  • Depositories: 0.36% (previous month: 0.40%)
  • By stage, 33.8% of total loans in forbearance are in the initial forbearance plan stage, while 52.9% are in a forbearance extension. The remaining 13.3% are forbearance re-entries, including re-entries with extensions.
  • Of the cumulative forbearance exits for the period from June 1, 2020, through March 31, 2023, at the time of forbearance exit:
  • 29.6% resulted in a loan deferral/partial claim.
  • 18.0% represented borrowers who continued to make their monthly payments during their forbearance period.
  • 17.7% represented borrowers who did not make all of their monthly payments and exited forbearance without a loss mitigation plan in place yet.
  • 16.1% resulted in a loan modification or trial loan modification.
  • 10.9% resulted in reinstatements, in which past-due amounts are paid back when exiting forbearance.
  • 6.5% resulted in loans paid off through either a refinance or by selling the home.
  • The remaining 1.2% resulted in repayment plans, short sales, deed-in-lieus or other reasons.
  • Total loans serviced that were current (not delinquent or in foreclosure) as a percent of servicing portfolio volume (#) increased to 96.35% in March 2023 from 95.76% in February 2023 (on a non-seasonally adjusted basis).
  • The five states with the highest share of loans that were current as a percent of servicing portfolio: Washington, Idaho, Colorado, Utah, and California.
  • The five states with the lowest share of loans that were current as a percent of servicing portfolio: Louisiana, Mississippi, New York, Oklahoma, and West Virginia.
  • 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 increased to 76.70% in March from 76.00% the previous month.
MBA’s monthly Loan Monitoring Survey (replaced MBA’s Weekly Forbearance and Call Volume Survey in November 2021) covers the period from March 1 through March 31, 2023, and represents 65% of the first-mortgage servicing market (32.7 million loans). To subscribe to the full report, go to

NOTES: For more detailed information on performance metrics, including seasonally adjusted delinquency rates by stage (30 days, 60 days, 90+ days), please refer to MBA’s Quarterly National Delinquency Survey at First-quarter 2023 results will be released on Thursday, May 11, 2023.

The next publication of the Monthly Loan Monitoring Survey (LMS) will be released on Monday, May 15, 2023, at 4:00 p.m. ET.  

For more information on COVID-19 mortgage forbearance and eligibility, please click here