Share of Mortgage Loans in Forbearance Decreases to 0.44% in June

• Total loans in forbearance decreased by 5 basis points in June 2023 relative to May 2023: from 0.49% to 0.44%.

• By investor type, the share of Ginnie Mae loans in forbearance decreased relative to the prior month: from 1.06% to 0.93%.

• The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative to the prior month: from 0.23% to 0.21%.

• The share of other loans (e.g., portfolio and PLS loans) in forbearance decreased relative to the prior month: from 0.58% to 0.52%.

• Loans in forbearance as a share of servicing portfolio volume (#) as of June 30, 2023:

• Total: 0.44% (previous month: 0.49%)

• Independent Mortgage Banks (IMBs): 0.56% (previous month: 0.64%)

• Depositories: 0.32% (previous month: 0.34%)

• By reason, 78.3% of borrowers are in forbearance because of COVID-19-related impacts. Another 6.1% are in forbearance because of a natural disaster. The remaining 15.6% of borrowers are in forbearance for other reasons, such as a temporary hardship caused by job loss, death, divorce, disability, etc.

• By stage, 34.9% of total loans in forbearance are in the initial forbearance plan stage, while 54.5% are in a forbearance extension. The remaining 12.6% are forbearance re-entries, including re-entries with extensions.

• Of the cumulative forbearance exits for the period from June 1, 2020, through June 30, 2023, at the time of forbearance exit:

• 29.5% resulted in a loan deferral/partial claim.

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

• 17.9% 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 (#) remained flat at 96.12% (on a non-seasonally adjusted basis) in June 2023 compared to May 2023.

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

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

• 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 decreased to 74.70% in June from 74.93% the previous month.

MBA’s monthly Loan Monitoring Survey (replaced MBA’s Weekly Forbearance and Call Volume Survey in November 2021) covers the period from June 1 through June 30, 2023, and represents 66% of the first-mortgage servicing market (32.8 million loans). To subscribe to the full report, go to www.mba.org/loanmonitoring.