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June 2024 » thefivestar.com 61 June 2024 J O U R N A L Walsh said. "With this pause came an increase in VA loans that remained delin- quent, but not in foreclosure inventory." FORBEARANCE SNAPSHOT: A LOOK AT CURRENT TRENDS A s home prices continue to aver- age more than $358,000 and up 4.3% year over year, rates bob in and out of the 7% range, and affordability struggles linger, the Mortgage Bankers Association (MBA) examines the nation's latest forbearance numbers, as the total number of loans in forbearance stands at 0.22% as of April 30, 2024. According to MBA's estimate, 110,000 homeowners are in forbearance plans, while the nation's mortgage servicers have provided forbearance options to approximately 8.1 million borrowers since March 2020. "The number of loans in forbearance has remained stagnant for the first four months of 2024," said Marina Walsh, CMB, MBA's VP of Industry Analysis. "While forbearance is still a viable option for homeowners needing temporary mortgage payment relief, its usage has di- minished without a major natural disas- ter or labor market downturn. Moreover, the performance of servicing portfolios and post-forbearance workouts remains strong, despite some fluctuations from month-to-month." Driving a Flatline As forbearance numbers level off, factors such as employment and nat- ural disasters which often impact loss mitigation trends, have remained steady as well. According to the U.S. Bureau of Labor Statistics (BLS), total nonfarm payroll employment increased by 175,000 in April 2024, and the number of unem- ployed people stood at 6.5 million, as the unemployment rate changed little at 3.9%. Job gains were reported in the fields of healthcare, social assistance, transpor- tation, and warehousing. Another factor noted by Walsh as im- pacting forbearance numbers is natural disasters. The early portion of the year was relatively quiet, as sporadic storms popped up in the Northeast, but things changed as the spring season began, and two major storms hit Iowa and Texas. In late April, President Joe Biden declared that a major disaster exists in the State of Iowa and ordered federal as- sistance to supplement state, tribal, and local recovery efforts in the areas affected by severe storms and tornadoes begin- ning April 26. Assistance can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the disaster. The U.S. Department of Housing and Urban Development (HUD) followed suit by ordering assistance to state, tribal, and local recovery efforts in the areas impacted by these storms. Effective immediately, HUD is providing a 90-day moratorium on foreclosures of mort- gages insured by the Federal Housing Administration (FHA), as well as foreclo- sures of mortgages to Native American borrowers guaranteed under the Section 184 Indian Home Loan Guarantee pro- gram. There is also a 90-day extension granted automatically for Home Equity Conversion Mortgages. The moratorium and extension are effective as of the Pres- ident's disaster declaration date. And FEMA has announced that federal disaster assistance was available to the state of Texas to supplement recov- ery efforts in areas impacted by severe storms, straight-line winds, tornadoes, and flooding beginning on April 26, 2024, and continuing. Assistance for Texans impacted includes grants for temporary housing and home repairs, low-interest loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of these storms. A Breakdown in Forbearance In April 2024, the share of Fannie Mae and Freddie Mac loans in forbear- ance declined one basis point from 0.12% to 0.11%. Ginnie Mae loans in forbear- "While forbearance is still a viable option for homeowners needing temporary mortgage payment relief, its usage has diminished without a major natural disaster or labor market downturn." —Marina Walsh, CMB, VP of Industry Analysis, MBA