Fewer Americans are in forbearance on their mortgages now than in any point in the last five months. But that doesn’t mean borrowers — and the mortgage industry — are out of the woods yet.
The share of mortgages in forbearance dropped to 6.93% as of Sept. 13, according to data from the Mortgage Bankers Association. The trade group estimates that roughly 3.5 million homeowners are in forbearance plans that allow them to skip or make reduced monthly loan payments.
The overall percentage of loans in forbearance has fallen for months now as the economy has begun to recover from the lockdowns triggered by the coronavirus pandemic. But not all segments of the market have improved.
The drop in the forbearance rate is largely a reflection of improvements related to loans backed by Fannie Mae and Freddie Mac. The percentage of these loans in forbearance fell for the 15th consecutive