The share of mortgages in forbearance increased to 0.47% as of October 31, up from 0.34% at the end of September, according to the Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey.
About 235,000 homeowners are currently in forbearance plans, the MBA estimates.
As of the end of October, the share of Fannie Mae and Freddie Mac loans in forbearance increased 7 basis points to 0.20%.
Ginnie Mae loans in forbearance increased by 30 basis points to 1.06%, and the forbearance share for portfolio loans and private-label securities increased 6 basis points to 0.43%.
“Approximately 65,000 more borrowers are in forbearance compared to one month ago,” says Marina Walsh, vice president of industry analysis for the MBA, in a statement. “While forbearances are still low compared to the height of the pandemic, the monthly increase in forbearances is the largest since May 2020 and likely driven by the effects of Hurricanes Helene and Milton.
“Of those loans in forbearance, 45 percent are related to natural disasters while the remaining 55 percent are primarily related to temporary hardship such as job loss, death, divorce, or disability,” Walsh adds. “Notwithstanding the storms, some borrowers may be experiencing other economic distress. October marks the fifth consecutive month in which the forbearance rate has increased, and the performance of overall servicing portfolios and loan workouts weakened compared to this time one year ago.”
Photo: Erik Mclean
