The total number of mortgage loans in forbearance decreased by 2 basis points in March, dropping to 0.36% of servicers’ portfolio volume, down from 0.38% in February, according to the Mortgage Bankers Association’s monthly Loan Monitoring Survey.
As of March 31, roughly 180,000 homeowners were in forbearance plans.
Mortgage servicers have provided approximately 8.6 million forbearances since March 2020, the MBA says.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 0.13%.
Ginnie Mae loans in forbearance decreased by 1 basis points to 0.83% – and the forbearance share for portfolio loans and private-label securities decreased 4 basis points to 0.33%.
“Overall mortgage performance improved in March, with more borrowers making their mortgage payments and fewer borrowers in forbearance and loan workouts compared to the prior month,” says Marina Walsh, CMB, vice president of industry analysis for the MBA, in a statement. “This monthly improvement may be tied to several factors such as receipt of tax refunds and homeowner recovery from natural disasters.”
“The labor market is relatively healthy, which is helping mortgage performance remain strong,” Walsh adds. “However, compared to one year ago, there are fewer borrowers current on their mortgages. Also, more borrowers in loan workouts – particularly those with FHA loans – are having difficulty staying current.”
Photo: Erik Mclean
