The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey for March 2025 revealed that the total number of loans now in forbearance decreased by two 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, and the nation’s mortgage servicers have provided approximately 8.6 million forbearances since March 2020.
“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 VP 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.”
The share of Fannie Mae and Freddie Mac (GSE) loans in forbearance decreased two basis points from 0.15% to 0.13% in March 2025. Ginnie Mae loans in forbearance decreased by one basis point from 0.84% to 0.83%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased four basis points from 0.37% to 0.33%.
“The labor market is relatively healthy, which is helping mortgage performance remain strong,” said Walsh. “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.”
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.
By reason, 76% 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 reporting the highest share of loans that were current as a percent of servicing portfolio included:
- Washington
- Idaho
- Alaska
- Oregon
- Colorado
The five states reporting the lowest share of loans that were current as a percent of servicing portfolio included:
- Louisiana
- Mississippi
- Indiana
- West Virginia
- Alabama
Click here for more on the MBA’s analysis of U.S. loan forbearances for the month of March 2025.
