Loans in Forbearance Remained Flat From November to DecemberBy RISMedia Staff
The total number of loans now in forbearance remained at 0.7% from November to December 2022, as stated in a new report from the Mortgage Bankers Association (MBA).
According to the MBA’s latest monthly Loan Monitoring Survey, 350,000 homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance decreased 1 basis point to 0.31%. Ginnie Mae loans in forbearance decreased 1 basis point to 1.45%, and the forbearance share for portfolio loans and private-label securities increased 3 basis points to 1%. Key highlights:
“For three consecutive months, the forbearance rate has remained flat — an indicator that we may have reached a floor on further improvements,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “New forbearance requests and re-entries continue to trickle in at about the same pace as forbearance exits. The overall performance of servicing portfolios was also flat compared to the previous month, but there was some deterioration in the performance of Ginnie Mae loans.” Added Walsh, “Forbearance remains an option for struggling homeowners and its usage may continue, especially if unemployment increases as expected. MBA is forecasting for the unemployment rate to reach 5.2 percent in the second half of 2023, up from its current level of 3.5 percent.” For the full report, visit www.mba.org/loanmonitoring. |
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