The share of mortgage loans in forbearance held steady at 0.70% in December.

by calculated risks 1/23/2020 04:00:00 PM

Note: This is as of December 31st.

From the MBA: The share of forbearing mortgage loans held steady at 0.70% in December

A monthly loan monitoring study conducted by the Mortgage Bankers Association (MBA) revealed that The total number of loans now outstanding remained flat month-on-month at 0.70% as of December 31, 2022.. According to MBA estimates, there are 350,000 homeowners on forbearance plans.

The share of Fannie Mae and Freddie Mac loans in repayment decreased by 1 basis point, to 0.31%. Ginnie Mae’s forbearance loans decreased 1 basis point to 1.45%, and the portfolio and private equity (PLS) loan forbearance share increased 3 basis points to 1.00%.

“For three consecutive months, the rate of patience has remained constant — an indication that we may be bottoming out on further improvement,” said Marina Walsh, MBA Vice President for Industry Analysis, Marina Walsh. “New forbearance requests and re-entries continue to flow in at approximately the same pace as forbearance exits. The overall performance of the Portfolio Service was also flat compared to the previous month, but there was some deterioration in the performance of Ginnie Mae Loans.”

Walsh added, “Forbearance remains an option for struggling homeowners and may continue to be used, especially if unemployment increases as expected.” MBA expects the unemployment rate to reach 5.2 percent in the second half of 2023, up from its current level of 3.5 percent. “.
Affirmations added

Click on the chart for a larger image.

This graph shows the percentage of a portfolio in carrying condition by type of investor over time.

The share of endurance plans was decreasing, although the percentage of patience did not change in November and December.

At the end of December, there were about 350,000 homeowners on forbearance plans.

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