Loans in forbearance increase for first time in 29 months

The states with the highest share of loans that were current relative to the servicing portfolio were Washington, Idaho, Colorado, Utah, and Oregon, while the states with the lowest share were Mississippi, Louisiana, New York, West Virginia, and Indiana.

By stage, 36.7% of all loans in forbearance were in the initial stage of their forbearance plans, while 50.9% were already in a forbearance extension. Forbearance re-entries and re-entry extensions made up the remaining 12.4%.

MBA’s loan monitoring survey also studied cumulative forbearance exits from June 1 through October 31 this year. At the time of forbearance exit, almost 30% resulted in a loan deferral or partial claim, 16% resulted in a loan modification, and 11% resulted in reinstatements, with past-due amounts paid back when existing. Roughly 7% resulted in loans paid off by selling the home or through a refinance.

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MBA’s loan monitoring survey represents two-thirds of the first-mortgage servicing market – or 32.9 million loans.