Forbearance Cases Level Off At 3 Million

About 3 million homeowners in the United States remain in forbearance plans as the Covid-19 pandemic stretches into its eighth month, according to a new report released Monday by the Mortgage Bankers Association.

MBA’s weekly forbearance survey found as of October 18:

  • The share of loans in forbearance decreased from 5.92 percent to 5.90 percent (and down from 6.32 percent two weeks earlier).
  • Ginnie Mae loans in forbearance increased from 8.14 percent to 8.17 percent.
  • Fannie Mae and Freddie Mac loans in forbearance decreased from 3.77 percent to 3.72 percent.
  • Independent mortgage bank mortgages in forbearance climbed from 6.33 percent to 6.35 percent.
  • Bank-managed mortgages dropped from 5.93 percent to 5.86 percent.

“The share of loans in forbearance declined only slightly in the prior week, after two weeks of a flurry of borrowers exiting as they reached the six-month mark,” MBA Senior Vice President and Chief Economist Mike Fratantoni said.