Mortgages In Forbearance Dip Slightly In New Year

The share of US mortgages in forbearance edged down slightly last week, though 2.7 million homeowners are still pausing their mortgage payments, according to the weekly report released Monday by the Mortgage Bankers Association.

The weekly survey found:

  • Total loans in forbearance as of January 3 decreased from 5.53 percent to 5.46 percent.
  • The share of Ginnie Mae loans in forbearance decreased from 7.92 percent to 7.85 percent.
  • The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 3.24 percent to 3.19 percent.
  • The share of independent mortgage banks in forbearance dropped from 6.01 percent to 5.92 percent.
  • Bank-managed mortgages dropped from 5.44 percent to 5.39 percent.

“The share of loans in forbearance slightly declined for each investor category entering the new year, remaining within the narrow range observed for the last two months,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “The data show that those homeowners who remain in forbearance are more likely to be in distress, with fewer continuing to make any payments and fewer exiting forbearance each month.”