Mortgage forbearances show further signs of improvement

However, the total completed loan workouts (repayment plans, loan deferrals/partial claims, loan modifications) from 2020 and onward that were current decreased by three basis points to 73.43% in August.

“While there was a monthly decline in the performance of post-forbearance workouts in August, overall mortgage servicing portfolios remain resilient,” Walsh noted in the report. “Compared to other credit types with weaker performance, the percentage of home mortgages that are performing is holding steady at a non-seasonally adjusted 96%.”

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The forbearance share for Fannie Mae and Freddie Mac mortgages edged down one basis point to 0.19%, Ginnie Mae loans in forbearance fell 15 basis points to 0.65%, and the percentage of portfolio loans and private-label securities (PLS) in forbearance dropped six basis points to 0.39% in August.

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