Forbearance Levels In US Remain Unchanged

The share of mortgages in forbearance hasn’t budged in recent weeks, with 3.6 million homeowners in the United States still having their loan payments paused during the coronavirus pandemic, the Mortgage Bankers Association announced Monday.

MBA’s weekly report found that 7.20 percent of loans were in forbearance as of August 23 – the exact same percentage as the week before and just 0.01 percent lower than two weeks before.

The survey also found:

  • The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the 12th week in a row to 4.88 percent – down from 4.93 percent the week before.
  • Ginnie Mae loans in forbearance increased to 9.58 percent from 9.54 percent.
  • 7.41 percent of independent mortgage bank loans were in forbearance, down from 7.43 percent.
  • 7.49 percent of bank-managed mortgages were in forbearance, up for 7.48 percent.

“The pace of new forbearance requests has been relatively flat across investor types, but for those with GSE loans, the rate of exits from forbearance regularly exceeds the rate of new requests,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist.