Forbearance Climbs Slightly; Delinquencies Down

The share of mortgages in forbearance in the United States increased ever so slightly in mid-November, while a second report released Monday found that mortgage delinquencies overall were down in October.

The Mortgage Bankers Association weekly report found:

  • Total loans in forbearance from 5.47 percent to 5.48 percent as of November 15, which works out to about 2.7 million mortgages in the United States.
  • The share of Ginnie Mae loans in forbearance increased from 7.70 percent to 7.73 percent.
  • The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 3.36 percent to 3.35 percent.
  • Independent mortgage bank-managed loans in forbearance held steady at 5.94 percent, while bank-manage mortgages climbed from 5.43 percent to 5.44 percent.

“A marked slowdown in forbearance exits, as well as a slight rise in the share of Ginnie Mae, portfolio, and PLS loans in forbearance, led to an overall increase for the first time since early June. The decline in exits in the prior week follows a flurry of them last month, when many borrowers reached the six-month point in their forbearance terms,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. 

Meanwhile, a new report released Monday by Black Knight found that:

  • Mortgage delinquencies improved again in October, falling to 6.44 percent, the lowest level since March.
  • 3.4 million mortgages remain delinquent, nearly twice as many as there were entering the year.
  • The number of loans 90 or more days past due improved in October, but remain at more than five times (+1.8 million) pre-pandemic levels.

At the state level, Black Knight found that Mississippi led the way with the share of homeowners being behind on their mortgages at 11.29 percent, followed by Louisiana (11.04 percent), Hawaii (9.55 percent), New York (8.77 percent) and Texas (8.43 percent).