The share of loans in forbearance increased to 0.23% as of June 30, according to the Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey.
“The number of loans in forbearance increased in June for the first time since October of 2022,” says Marina Walsh, vice president of industry analysis for the MBA, in a statement. “Furthermore, the performance of both loan workouts and overall servicing portfolios weakened, particularly for government loans.”
About 115,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 8.2 million borrowers since March 2020.
The share of Fannie Mae and Freddie Mac loans in forbearance increased 1 basis point to 0.11% in June.
Ginnie Mae loans in forbearance increased by 5 basis points to 0.44%, and the forbearance share for portfolio loans and private-label securities (PLS) stayed flat at 0.31%.
“There were several factors that impacted homeowners, including the uptick of severe weather events that hit multiple regions of the country as well as early signs of consumer distress that could potentially impact borrowers’ ability to pay their mortgages,” Walsh says. “Additionally, June’s month-end fell on a Sunday, and the weekend timing typically leads to higher mortgage defaults in any given month.”
Photo: Erik Mclean