The total number of U.S. home loans now in forbearance increased by 3 basis points to 0.34% as of the end of September, according to the Mortgage Bankers Association (MBA).

The MBA estimates there are about 170,000 homes that are in forbearance plans, which is an agreement to temporarily postpone a home loan payment without foreclosing. The share of Fannie Mae and Freddie Mac loan in forbearance remained at the same level as in August at 0.13%. Ginnie Mae loans in forbearance increased 10 basis points to 0.76%. The share of forbearance cases for portfolio loans and private-label securities (PLS) increases a scant 2 basis points to 0.37%.

About 70% of borrowers in forbearance are there because of temporary hardship due to job loss, death, divorce or disability. Another 25.9% are there because of a natural disaster. Only 3.7% of borrowers requiring a temporary postponement in loan payments identify COVID-19 as the reason. About 66% of loans in forbearance are in the initial forbearance plan stage, while 20.5% are in an extended forbearance program.

States with the lowest share of loans that were current as a percentage of servicing portfolio include Louisiana, Mississippi, Indiana, West Virginia and Alabama. The states with the highest share of loans that were current include Washington, Idaho, Colorado, Oregon and California.

“The percentage of loans in forbearance increased for the fourth consecutive month,” said Marina Walsh, MBA’s vice president of industry analysis. “Since May 2024, Ginnie Mae loans in forbearance increased by almost 40 basis points, compared to 6 basis points for portfolio and PLS loans and 3 basis points for Fannie and Freddie loans.”