Forbearance numbers seem to have officially leveled off.
The latest Mortgage Bankers Association report released Monday found that 8.46 percent of U.S. mortgages were in forbearance as of May 24 – up just 0.10 points from 8.36 percent a week earlier. By contrast, the percentage increased by 1 to 2 percentage points during some weeks in April.
That equates to about 4.2 million homeowners whose mortgages are in forbearance.
“MBA’s survey continues to indicate that fewer homeowners are seeking forbearance as more states across the country reopen their economies and prospects begin to improve,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist.
The $2 trillion CARES Act includes a moratorium on foreclosures and the right to forbearance on federally backed mortgages. Forbearance allows borrowers to put off payments for at least 180 days if they suffer economic hardship during the pandemic.
MBA’s survey found:
- The share of Ginnie Mae loans in forbearance increased from 11.6 percent to 11.82 percent.
- The share of Fannie Mae and Freddie Mac loans in forbearance increased from 6.36 percent to 6.39 percent.
- Bank loans in forbearance increased from 9.13 percent to 9.19 percent.
- Independent mortgage banks increased from 8.11 percent to 8.21 percent.
In early March, just 0.25 percent of mortgages were in forbearance.