The number of mortgages in forbearance inched down once again this week – with 3.4 million homeowners in the United States still pausing their mortgage payments amid the coronavirus pandemic, the Mortgage Bankers Association announced Monday.
The weekly survey found:
- Total loans in forbearance decreased by from 6.87 percent to 6.81 percent for the week ending September 27.
- The share of Ginnie Mae loans in forbearance increased from 9.15 percent to 9.16 percent.
- The share of Fannie Mae and Freddie Mac loans decreased from 4.46 percent to 4.39 percent.
- The share of independent mortgage bank-managed loans dropped from 7.23 percent to 7.19 percent.
- Bank-managed mortgages dropped from 7.11 percent to 7.03 percent.
“As of the end of September, there continues to be a slow and steady decrease in the share of loans in forbearance – driven by consistent declines in the GSE loan share – and a persistently high amount in the Ginnie Mae portfolio,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “The significant churn in the labor market now, more than six months into the pandemic, is still causing financial distress for millions of homeowners. As a result, more than 70 percent of loans in forbearance are now in an extension.”