The total number of loans now in forbearance increased by 4 basis points to 0.31% as of Aug. 31, according to data from the Mortgage Bankers Association (MBA). A total of 155,000 homeowners are currently in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance increased 1 basis point to 0.13% in August while Ginnie Mae loans in forbearance increased by 10 basis points to 0.66%. The forbearance share for portfolio loans and private-label securities increased 2 basis points to 0.35%.
During August, the five states with the highest share of loans that were current as a percent of servicing portfolio were Idaho, Washington, Colorado, Oregon, and California. The five states with the lowest share of loans that were current as a percent of servicing portfolio were Louisiana, Mississippi, Indiana, West Virginia, and Alabama.
“For the third consecutive month, the percentage of loans in forbearance increased across all loan types,” said Marina Walsh, MBA’s vice president of industry analysis. “By investor type, Ginnie Mae loans in forbearance have increased the most – up 27 basis points since May 2024. Forbearance levels are much lower than they were during the first two years of the pandemic. However, a weakening in the performance of servicing portfolios and an increase in forbearance requests are both likely given the softening observed in the labor market.”
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