Forbearance Levels Decline Again

The share of mortgages in forbearance in the United States declined slightly again the first week in March, according to the latest report released Monday by the Mortgage Bankers Association.

MBA’s weekly survey found that 2.6 million homeowners were in forbearance plans as of March 7. The survey also showed:

  • Total loans in forbearance decreased from 5.20 percent to 5.14 percent.
  • The share of Ginnie Mae loans in forbearance decreased from 7.28 percent to 7.16 percent.
  • The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 2.94 percent to 2.88 percent.

“One year after the onset of the pandemic, many homeowners are approaching 12 months in their forbearance plan. That is likely why call volume to servicers picked up in the prior week to the highest level since last April, and forbearance exits increased to their highest level since January. With new forbearance requests unchanged, the share of loans in forbearance decreased again,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist.

“The American Rescue Plan provides needed support for homeowners who are continuing to struggle during these challenging times, and stimulus payments are being delivered to households now. We anticipate that this support, along with the improving job market, will help many homeowners to get back on their feet.”