Forbearance programs, implemented in response to COVID-19’s nationwide economic toll, have dropped off significantly since 2020. Despite this apparent decline, a new report from the Mortgage Bankers Association (MBA) indicates that more than two-thirds of borrowers across all loan types – including Fannie Mae, Freddie Mac, and private (PMI) – remain in forbearance.
The MBA report stated that the majority of borrowers qualify to enter or stay in forbearance plans, which can be a vital safety net for the millions of Americans facing the effects of the pandemic. The report also revealed that most borrowers only stayed in forbearance for one to three months and typically have payments that have not been waived or deferred; instead the payments are usually extended over the term of the loan.
Important Elements:
– Forbearance plans have dropped off since 2020
– More than two-thirds of borrowers across all loan types remain in forbearance
– Borrowers often only stay in forbearance for one to three months
– Payments are typically extended over the term of the loan, but are not waived or deferred
You can read this full article at: https://www.housingwire.com/articles/mortgage-forbearance-improves-in-july/(subscription required)
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