by Calculated Risk on 7/18/2022 04:00:00 PM
Note: This is as of June 30th.
Monitoring Survey revealed that the total number of loans now in forbearance decreased by 4 basis
points from 0.85% of servicers’ portfolio volume in the prior month to 0.81% as of June 30, 2022.
According to MBA’s estimate, 405,000 homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 3 basis points to 0.35%.
Ginnie Mae loans in forbearance increased 1 basis point to 1.26%, and the forbearance share for
portfolio loans and private-label securities (PLS) declined 18 basis points to 1.68%.
“The overall forbearance rate in June stayed relatively flat with just a 4-basis-point decline from May,”
said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Borrowers continue to exit
forbearance, but at a much slower pace than six or nine months ago. New forbearance requests are still
trickling in, as permitted under the CARES Act, resulting in very little movement in the overall
percentage of loans in forbearance.”
Added Walsh, “There are some early indicators of borrower stress resulting from high inflation and
rising interest rates, among other factors. For example, overall servicing portfolio performance dropped
by 14 basis points to 95.71% current in June, and the performance of post-forbearance workouts
declined by 140 basis points to 81.34%. It is worth monitoring post-forbearance workouts for all
borrowers, and particularly for borrowers with government loans, who are typically the most vulnerable
to economic slowdowns.”
This graph shows the percent of portfolio in forbearance by investor type over time.
The share of forbearance plans is decreasing, and, at the end of June, there were about 405,000 homeowners in forbearance plans.