Share of Mortgage Loans in Forbearance Increases to 0.23% in June

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• Total loans in forbearance increased by 2 basis points in June 2024 relative to May 2024: from 0.21% to 0.23%.

• By investor type, the share of Ginnie Mae loans in forbearance increased relative to the prior month from 0.39% to 0.44%.

• The share of Fannie Mae and Freddie Mac loans in forbearance increased relative to the prior month from 0.10% to 0.11%.

• The share of other loans (e.g., portfolio and PLS loans) in forbearance remained the same relative to the prior month at 0.31%.

• Loans in forbearance as a share of servicing portfolio volume (#) as of June 30, 2024:

• Total: 0.23% (previous month: 0.21%)

• Independent Mortgage Banks (IMBs): 0.24% (previous month: 0.22%)

• Depositories: 0.26% (previous month: 0.25%)

• By reason, 75.9% of borrowers are in forbearance for reasons such as a temporary hardship caused by job loss, death, divorce, or disability.  Another 16.2% are in forbearance because of a natural disaster. Only 7.9% of borrowers are still in forbearance because of COVID-19. 

• By stage, 59.4% of total loans in forbearance are in the initial forbearance plan stage, while 21.4% are in a forbearance extension. The remaining 19.2% are forbearance re-entries, including re-entries with extensions.

• Total loans serviced that were current (not delinquent or in foreclosure) as a percent of servicing portfolio volume (#) decreased to 95.65% (on a non-seasonally adjusted basis) in June 2024, down 49 basis points from 96.14% in May 2024.

• The performance of servicing portfolios weakened across all states in June.

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

•  The five states with the lowest share of loans that were current as a percent of servicing portfolio: Louisiana, Mississippi, Indiana, Alabama, 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  73.27% in June 2024, down 251 basis points from 75.78% the prior month.  The performance of loan workouts across all product types worsened in June 2024.