MBA: Share of Mortgage Loans in Forbearance Decreases Slightly to 0.36% in March
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The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 2 basis points from 0.38% of servicers’ portfolio volume in the prior month to 0.36% as of March 31, 2025. According to MBA’s estimate, 180,000 homeowners are in forbearance plans. Mortgage servicers have provided approximately 8.6 million forbearances since March 2020.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 0.13% in March 2025. Ginnie Mae loans in forbearance decreased by 1 basis points to 0.83%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased 4 basis points to 0.33%.
“Overall mortgage performance improved in March, with more borrowers making their mortgage payments and fewer borrowers in forbearance and loan workouts compared to the prior month,” said MBA’s Vice President of Industry Analysis Marina Walsh, CMB. “This monthly improvement may be tied to several factors such as receipt of tax refunds and homeowner recovery from natural disasters.”
Added Walsh, “The labor market is relatively healthy, which is helping mortgage performance remain strong. However, compared to one year ago, there are fewer borrowers current on their mortgages. Also, more borrowers in loan workouts–particularly those with FHA loans–are having difficulty staying current.”
Key Findings of MBA’s Loan Monitoring Survey – March 1 to March 31, 2025
• Total loans in forbearance decreased by 2 basis points in March 2025 relative to February 2025: from 0.38% to 0.36%.
By investor type, the share of Ginnie Mae loans in forbearance decreased relative to the prior month from 0.84% to 0.83%.
The share of Fannie Mae and Freddie Mac loans in forbearance decreased relative to the prior month from 0.15% to 0.13%.
The share of other loans (e.g., portfolio and PLS loans) in forbearance decreased relative to the prior month from 0.37% to 0.33%.
• Loans in forbearance as a share of servicing portfolio volume (#) as of March 31, 2025:
Total: 0.36% (previous month: 0.38%; previous year: 0.22%)
Independent Mortgage Banks (IMBs): 0.39% (previous month: 0.40%; previous year: 0.25%)
Depositories: 0.35% (previous month: 0.38%; previous year: 0.23%)
• By reason, 76.0% of borrowers are in forbearance for reasons such as a temporary hardship caused by job loss, death, divorce, or disability. Another 21.4% are in forbearance because of a natural disaster. The remaining 2.6% of borrowers are still in forbearance because of COVID-19.
• By stage, 64.0% of total loans in forbearance are in the initial forbearance plan stage, while 17.6% are in a forbearance extension. The remaining 18.4% are forbearance re-entries, including re-entries with extensions.
• Total loans serviced that were current (not delinquent or in foreclosure) as a percent of servicing portfolio volume (#) was 95.56% in March 2025, up 40 basis points from 95.16% the prior month (on a non-seasonally adjusted basis), and down 35 basis points from 95.92% one year ago.
The five states with the highest share of loans that were current as a percent of servicing portfolio: Washington, Idaho, Alaska, Oregon, and Colorado.
The five states with the lowest share of loans that were current as a percent of servicing portfolio: Louisiana, Mississippi, Indiana, West Virginia, and Alabama.
• The percentage of servicing volume with loan workouts (completed in 2020 or after) was 6.47% in March 2025, slightly down from 6.49% the previous month and up from 6.11% one year ago.
• Total completed loan workouts from 2020 and onward (repayment plans, loan deferrals/partial claims, loan modifications) that were current as a percent of total completed workouts increased to 67.83% in March 2025, up 147 basis points from 66.36% the prior month and down 765 basis points from 75.48% one year ago.
MBA’s monthly Loan Monitoring Survey covers the period from March 1 through March 31, 2025, and represents 61% of the first-mortgage servicing market (30.8 million loans). To subscribe to the full report, go to www.mba.org/loanmonitoring.
NOTES:
• The rates reported in the LMS are not seasonally adjusted.
• For more detailed information on performance metrics, including seasonally adjusted delinquency rates by stage (30 days, 60 days, 90+ days), please refer to MBA’s Quarterly National Delinquency Survey at www.mba.org/nds. First-quarter 2025 results will be released on Tuesday, May 13, 2025.
• The next publication of the Monthly Loan Monitoring Survey (LMS) will be released on Monday, May 19, 2025.
