Forbearance Levels Drop In US

Nearly seven months into the pandemic, 3.4 million homeowners in the United States remain in forbearance plans as they cope with the economic impacts of the shutdowns across the country.

The share of mortgages in forbearance dropped again, with 6.87 percent remaining paused. The MBA survey found for the week ending September 20:

  • Total loans in forbearance decreased from 6.93 percent to 6.87 percent.
  • The share of Ginnie Mae loans in forbearance remained flat at 9.15 percent.
  • The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 4.55 percent to 4.46 percent.
  • Independent mortgage bank-managed loans in forbearance dropped from 7.26 percent to 7.23 percent.
  • Bank-managed mortgages dropped from 7.18 percent to 7.11 percent.

“The share of loans in forbearance continues to decline and is now at a level not seen since mid-April. Many homeowners with GSE loans are exiting forbearance into a deferral plan and resuming their original mortgage payment but waiting to pay the forborne amount until the end of the loan,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist.