The share of mortgages in forbearance increased three basis points in November compared with October, rising from from 0.47% to 0.50% of all loans, according to the Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey.
As of the end of the month, roughly 250,000 homeowners were in forbearance plans, according to the MBA’s data.
In November, the share of Fannie Mae and Freddie Mac loans in forbearance increased 1 basis point to 0.21%.
The share of Ginnie Mae loans in forbearance increased by 5 basis points to 1.11%.
The share of portfolio loans and private-label securities (PLS) in forbearance decreased 1 basis point to 0.42%.
“The overall mortgage forbearance rate increased three basis points in November and has now risen for six consecutive months,” says Marina Walsh, CMB, vice president of industry analysis for the MBA, in a statement. “By investor type, Ginnie Mae loans are showing the greatest variance, with an increase of 72 basis points over the six-month period. That is compared to 11 basis points for Fannie Mae and Freddie Mac Loans, and portfolio and PLS loans, respectively.”
“There is some weakening in performance of servicing portfolios and loan workouts compared to one year ago. In the wake of natural disasters and slowing in the labor market, borrowers with government loans tend to be impacted more than conventional borrowers,” Walsh adds.
By reason, 51.3% of borrowers are in forbearance for reasons such as a temporary hardship caused by job loss, death, divorce, or disability. Another 46.0% are in forbearance because of a natural disaster. Less than 2.8% of borrowers are still in forbearance because of COVID-19.
Mortgage servicers have provided forbearance to approximately 8.5 million borrowers since March 2020.
Photo: Toa Heftiba
