MBA reports drop in forbearance rates as homeowners recover from pandemic hardships
The decline in forbearance was observed across all investor types, with Ginnie Mae loans experiencing an eight-basis-point decrease to 1.37%. The share of Fannie Mae and Freddie Mac loans in forbearance dropped one basis point to 0.30%, and the forbearance rate for portfolio loans and private-label securities decreased 17 basis points to 0.83%.
However, Walsh said, “With the national emergency set to end on May 11 of this year, many borrowers will no longer have the option to initiate COVID-19-related forbearance. Mortgage forbearance in other forms – whether due to natural disasters or life events – will continue, albeit with different requirements and parameters.”
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