US Mortgages In Forbearance Tick Up

The number of US mortgages in forbearance increased slightly in mid-December, according to the latest weekly forbearance report released by the Mortgage Bankers Association.

MBA’s weekly survey released Monday found 2.7 million homeowners remained in forbearance plans. The survey also showed:

  • 5.49 percent of mortgages were in forbearance as of December 13, up from 5.48 percent the week before.
  • The share of Ginnie Mae loans in forbearance increased from 7.68 percent to 7.79 percent.
  • The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 3.26 percent to 3.25 percent.
  • 5.95 percent of independent mortgage bank mortgages were forbearance, down from 5.98 percent.
  • 5.41 percent of bank-managed mortgages were in forbearance, up from 5.38 percent.

“The share of loans in forbearance has stayed fairly level since early November, often with small decreases in the GSE loan share and increases for Ginnie Mae loans. That was the case last week. Additionally, forbearance requests from Ginnie Mae borrowers reached the highest level since the week ending June 14,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Additional restrictions on businesses and rising COVID-19 cases are causing a renewed increase in layoffs and other signs of slowing economic activity. These troubling trends will likely result in more homeowners seeking relief.”