The share of Fannie Mae and Freddie Mac loans in forbearance dipped to 0.11%, while Ginnie Mae loans saw a slight decline to 0.39%. Forbearance for portfolio loans and private-label securities remained unchanged at 0.31%.
“While forbearance is still a viable option for homeowners needing temporary mortgage payment relief, its usage has diminished without a major natural disaster or labor market downturn,” Marina Walsh, vice president of industry analysis at MBA, said in the report.
The majority of borrowers in forbearance (71.1%) cited temporary hardships like job loss, death, divorce, or disability as the reason for seeking relief. COVID-19-related forbearances accounted for 11.5% of cases, while another 11.4% were due to natural disasters.
The survey also tracked the progress of borrowers exiting forbearance. As of April, 75.86% of total completed loan workouts were current, including repayment plans, loan deferrals, and loan modifications. This suggests that most borrowers who exit forbearance are able to successfully resume regular mortgage payments.
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