Borrowers continued to exit from forbearance plans last week.

Forbearance Numbers Down to 3% of Servicing Volume

The latest number of mortgages remaining in forbearance plans, according to the Mortgage Bankers Association (MBA), came in at just 3% of all serviced loans for the period of September 6 to September 12.  This 3% represents an eight-basis point drop from 3.08% the previous week.

The MBA estimates there are approximately 1.5M borrowers  currently in forbearance plans.

Mike Fratantoni, the MBA’s senior vice president and chief economist, said. “20% of loans in forbearance are either new forbearance requests or re-entries.  At this point, borrowers in forbearance extensions are exiting at a faster rate as they near – or reach – the expiration of their maximum forbearance term.”

READ: 2022 Top Agent Success Secrets [Revealed]: New FREE Real Estate Coaching Web Event, Revealing 17 Surprising Secrets Of The Top 100 $ Millionaire Agents. Get Your FREE Spot For The 2022 Real Estate Coaching Webinar Now. After You Have Attended This Event You Will Have A Huge Feeling Of Relief Knowing You Will FINALLY Laugh At Your Money Worries – You Will Have Your Own Personalized 2022 Step-By-Step Business Plan. Learn Now How To Generate 100’s of Motivated Leads for FREE, Without Coming Off As A Pushy Salesperson and Losing Your Soul. You Will Soon Know How To Become One of the 1000s of Agents Making HUGE Money Who Never Thought They Could. YES, I Want To Attend The FREE Webinar! <——Click To Register

P.S. Free Webinar, Limited Space. Less Than 300 Spots Still Available.

Loans in Forbearance Plans By Forbearance Stages

Among current forbearance-plan borrowers,

  • 11.3% are in their initial stage of forbearance
  • 8.5% are in the re-entry stage of forbearance
  • 80.2% remain in their extension stage of forbearance

Thanks to the passage of the CARES Act by Congress in 2020, millions of borrowers entered COVID-related forbearance plans in March of that year.  Two six-month extensions were passed in subsequent legislation.  The first wave of borrowers in COVID-forbearance is now approaching the end of their 18-month protections.

Forbearance Numbers for Distressed Borrowers with Portfolio and/or Private-Label Loans

Here’s a look at where forbearance numbers stand that were not covered by the federal COVID-forbearance relief mandate:

  • Portfolio & PLS Loans dropped to 6.95% in the week ending September 12
  • Fannie Mae and Freddie Mac conventional mortgages dropped for a 1.47% share of volume at GSEs
  • Ginnie Mae-backed mortgages in forbearance posted 3.39% 

Results of Distressed Borrowers

What happened with the distressed borrowers who had exited their forbearance plans between 6/1/20 and 9/12/21?

  • 28.6% ended up in deferral or partial claim
  • 21.9% made regular payments while in forbearance
  • 416.% exited without loss mitigation plan in place
  • 12.7% were reinstatements
  • 11.6% had loan modifications
  • 7.4% either refinanced or sold property
  • 1.4% exited in repayment plans, short sales of deed-in-lieu

Thanks to the Mortgage Bankers Association and National Mortgage News. 


Claim Your FREE Real Estate Treasure Map!