Share of forbearance mortgages up slightly to 0.70% in October.

by calculated risks 11/21/2022 04:12:00 PM

Note: This is as of October 31st.

From the MBA: The share of forbearing mortgages increased slightly to 0.70% in October

The Mortgage Bankers Association’s (MBA) Monthly Loan Monitoring Study revealed that the total number of loans now in the carrying period rose by 1 basis point, from 0.69% of the service providers’ portfolio size in the previous month. to 0.70% effective October 31, 2022. At the discretion of the MBA, 350,000 homeowners are on forbearance plans.

Fannie Mae and Freddie Mac’s share of patience increased 1 basis point, to 0.31%. Ginnie Mae’s forbearance share rose 8 basis points to 1.41%, and the share of portfolio and private equity (PLS) loan forbearance fell 11 basis points to 1.03%.

“The overall share of loans in the forbearance period increased slightly in October, but it was a mixed bag depending on the type of investor. The forbearance rate for Ginnie Mae and Fannie loans said Marina Walsh, MBA Vice President for Industry Analysis at MBA. Mae and Freddie Mac have increased, and there has been a decrease in Portfolio Loans and PLS Loans.” Several factors were behind the first monthly forbearance increase in 29 months, including the effects of Hurricane Ian in the Southeast, and the decreasing number and placement of loans purchased from Ginnie Mae’s pools. In the portfolio, and the fact that new patience requests were closely related to the identical endurance exits for the last three months.”

Walsh added, “The total share of loans that were outstanding last month fell 15 basis points to 95.70%, with 44 countries reporting declines (neither in arrears nor in foreclosures). Florida, which was hit hard by Hurricane Ian, saw a 49 basis point decline in its share of existing loans — the largest decline of all states.. “
Affirmations added

MBA Endurance Survey
Click on the chart for a larger image.

This graph shows the percentage of a portfolio in carrying condition by type of investor over time.

The share of endurance plans has been decreasing, although in October there was a slight increase. At the end of October, there were about 350,000 homeowners on forbearance plans.