Share of Mortgage Loans in Forbearance Decreases to 0.51% in April
- Total loans in forbearance decreased by 4 basis points in April 2023 relative to March 2023: from 0.55% to 0.51%.
- By investor type, the share of Ginnie Mae loans in forbearance decreased relative to the prior month: from 1.18% to 1.11%.
- The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative to the prior month: from 0.26% to 0.24%.
- The share of other loans (e.g., portfolio and PLS loans) in forbearance decreased relative to the prior month: from 0.68% to 0.61%.
- Loans in forbearance as a share of servicing portfolio volume (#) as of April 30, 2023:
- Total: 0.51% (previous month: 0.55%)
- Independent Mortgage Banks (IMBs): 0.68% (previous month: 0.74%)
- Depositories: 0.35% (previous month: 0.36%)
- By stage, 34.4% of total loans in forbearance are in the initial forbearance plan stage, while 53.2% are in a forbearance extension. The remaining 12.4% are forbearance re-entries, including re-entries with extensions.
- Of the cumulative forbearance exits for the period from June 1, 2020, through April 30, 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 (#) decreased to 95.89% in April 2023 from 96.35% in March 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, Colorado, Idaho, Oregon, and California.
- The five states with the lowest share of loans that were current as a percent of servicing portfolio: Louisiana, Mississippi, New York, Indiana, and Alabama.
- 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 decreased to 74.39% in April from 76.70% 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 April 1 through April 30, 2023, and represents 65% of the first-mortgage servicing market (32.7 million loans). To subscribe to the full report, go to www.mba.org/loanmonitoring.
For more information on COVID-19 mortgage forbearance and eligibility, please click here.