The total share of mortgages in forbearance increased to 0.50% in November, up from 0.47% in October.
According to data from the Mortgage Bankers Association, an estimated 250,000 homeowners are in forbearance plans.
The share of Fannie Mae and Freddie Mac loans in forbearance increased 1 basis point to 0.21% last month while Ginnie Mae loans in forbearance increased by 5 basis points to 1.11%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased 1 basis point to 0.42%.
“The overall mortgage forbearance rate increased three basis points in November and has now risen for six consecutive months,” said Marina Walsh, MBA’s vice president of industry analysis. “By investor type, Ginnie Mae loans are showing the greatest variance, with an increase of 72 basis points over the six-month period. That is compared to 11 basis points for Fannie Mae and Freddie Mac Loans, and portfolio and PLS loans, respectively. There is some weakening in performance of servicing portfolios and loan workouts compared to one year ago. In the wake of natural disasters and slowing in the labor market, borrowers with government loans tend to be impacted more than conventional borrowers.”
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