bee Calculated Risk On 2/18/2025 02:16:00 PM
From the MBA: Share of Mortgage Loans in Forbearance decreases to 0.40% in January
The Mortgage Bankers Association’s (MBA) Monthly Loan Monitoring Survey Revealed That The Total Number Of Loans Now In Forbearance Decreased by 7 Base Points from 0.47% Of Servicers’ Portfolio Volume In The Prior Month To To 0.40% as or January 31, 2025. According to MBAs Estimate, 200,000 homeowners are in Forbearance Plans.
The Share of Fannie Mae and Freddie Mac Loans in Forbearance decreased 2 base points to 0.17% in January 2025. Ginnie Mae Loans in Forbearance decreased by 19 Base Points to 0.88%, and the Forbearance Share for Portfolio Loans and Private-LaBel Securities (PLS ) Remained the same as the prior month at 0.40%.
“While the number of forbearance requests grew in January, the number of forbearance exits outweighed that pick-up, reaching the highest level since June 2022,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “This outcome was somewhat surprising given the recent events in california, but it speaks to recovery in other parts of the country affected by natural disasters and the movement of aged government loans out of forbearance.”
Added Walsh, “As the number of Borrowers in Forbearance dropped this past month, the number of borrowers with permanent loan workouts grew. Today, approximately 6.5 percent of all borrowers – OR 3.3 Million homeowners – are in a loan workout completed in 2020 or after. ”
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At Reason, 64.1% or Borrowers are in Forbearance for reasons such as a temporary hardship caused by job loss, death, divorce, or disability. Another 32.9% are in forbearance because of a natural disaster. The remaining 3.0% of borrowers are still in forbearance because of Covid-19.
Emphasis added
At the end of January, there were about 200,000 homeowners in forbearance plans.