Share of Mortgage Loans in Forbearance Decreases to 0.49% in May

Key Findings of MBA's Loan Monitoring Survey – May 1 to May 31, 2023

• Total loans in forbearance decreased by 2 basis points in May 2023 relative to April 2023: from 0.51% to 0.49%.

• By investor type, the share of Ginnie Mae loans in forbearance decreased relative to the prior month: from 1.11% to 1.06%.

• The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative to the prior month: from 0.24% to 0.23%.

• The share of other loans (e.g., portfolio and PLS loans) in forbearance decreased relative to the prior month: from 0.61% to 0.58%.

• Loans in forbearance as a share of servicing portfolio volume (#) as of May 31, 2023:

• Total: 0.49% (previous month: 0.51%)

• Independent Mortgage Banks (IMBs): 0.64% (previous month: 0.68%)

• Depositories: 0.34% (previous month: 0.35%)

• By stage, 34.9% of total loans in forbearance are in the initial forbearance plan stage, while 52.6% are in a forbearance extension. The remaining 12.5% are forbearance re-entries, including re-entries with extensions.

• Of the cumulative forbearance exits for the period from June 1, 2020, through May 31, 2023, at the time of forbearance exit:

• 29.6% resulted in a loan deferral/partial claim.

• 17.9% represented borrowers who continued to make their monthly payments during their forbearance period.

• 17.8% represented borrowers who did not make all of their monthly payments and exited forbearance without a loss mitigation plan in place yet.

• 16.1% resulted in a loan modification or trial loan modification.

• 10.8% resulted in reinstatements, in which past-due amounts are paid back when exiting forbearance.

• 6.6% resulted in loans paid off through either a refinance or by selling the home.

• The remaining 1.2% resulted in repayment plans, short sales, deed-in-lieus or other reasons.

• Total loans serviced that were current (not delinquent or in foreclosure) as a percent of servicing portfolio volume (#) increased to 96.12% in May 2023 from 95.89% in April 2023 (on a non-seasonally adjusted basis).

• The five states with the highest share of loans that were current as a percent of servicing portfolio: Washington, Idaho, Colorado, California, and Oregon.

• The five states with the lowest share of loans that were current as a percent of servicing portfolio: Louisiana, Mississippi, West Virginia, New York, and Indiana.

• Total completed loan workouts from 2020 and onward (repayment plans, loan deferrals/partial claims, loan modifications) that were current as a percent of total completed workouts increased to 74.93% in May from 74.39% the previous month.