The number of US mortgages in forbearance fell to 3.5 million, dropping slightly from the previous week, according to a report released Monday by the Mortgage Bankers Association.
As of September 6, 7.01 percent of US homeowners still had paused making mortgage payments amid the coronavirus pandemic. That’s down from 7.16 percent at the end of August, according to MBA.
The MBA survey found:
- The share of Ginnie Mae loans in forbearance decreased from 9.62 percent to 9.12 percent.
- The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 4.80 percent to 4.65 percent.
- Independent mortgage bank loans in forbearance dropped from 7.41 percent to 7.33 percent.
- Bank-managed mortgages in forbearance dropped from 7.40 percent to 7.21 percent.
“The beginning of September brought another drop in the share of loans in forbearance, with declines in both GSE and Ginnie Mae forbearance shares. However, at least a portion of the decline in the Ginnie Mae share was due to servicers buying delinquent loans out of pools and placing them on their portfolios. As a result of this transfer, the share of portfolio loans in forbearance increased,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist.