Mortgage forbearance rate holds steady but shows signs of weakness

“The forbearance rate for Ginnie Mae loans increased for the fourth consecutive month, and the overall performance of the portfolio declined for the third consecutive month,” she said. “Furthermore, the performance of government post-forbearance workouts also weakened.”

The share of Fannie Mae and Freddie Mac loans in forbearance increased by one basis point to 0.32%, and Ginnie Mae forbearances increased five basis points to 1.46%. Meanwhile, the forbearance share for portfolio loans and private-label securities (PLS) declined six basis points to 0.97%.

“With many indicators pointing to a recession and higher unemployment in 2023, many of the most vulnerable homeowners will be those with FHA, VA, or other government loans. Loss mitigation options may help to ease the financial hardship for these homeowners,” Walsh said.