by Calculated Risk on 3/17/2025 07:01:00 PM
From the MBA:
Share of Mortgage Loans in Forbearance Decreases Slightly to 0.38% in February
The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 2 basis points from 0.40% of servicers’ portfolio volume in the prior month to 0.38% as of February 28, 2025. According to MBA’s estimate, 190,000 homeowners are in forbearance plans. Mortgage servicers have provided approximately 8.6 million forbearances since March 2020.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 0.15% in February 2025. Ginnie Mae loans in forbearance decreased by 4 basis points to 0.84%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased 3 basis points to 0.37%.
“Despite February’s monthly decline of loans in forbearance, the estimated number of forbearances and loan workouts increased compared to one year ago,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “The year-over-year gain may be attributed to increasing escrow payments for taxes and insurance, inflationary pressures, natural disasters, aging servicing portfolios, and a softening in the labor market. At the same time, the performance of loan workouts and overall servicing portfolios weakened compared to one year ago.”
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By reason, 73.0% of borrowers are in forbearance for reasons such as a temporary hardship caused by job loss, death, divorce, or disability. Another 24.2% are in forbearance because of a natural disaster. The remaining 2.8% of borrowers are still in forbearance because of COVID-19.
emphasis added
At the end of February, there were about 190,000 homeowners in forbearance plans.
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