The browser you are using is not supported. Please consider using a modern browser.
Does coming out of forbearance impact the mortgage credit score?
Rosa Mumm, our product support manager, is asked quite frequently, “What’s going to happen to a borrower’s mortgage credit score when a loan comes out of forbearance?” According to the MBA, there are 2.7 million mortgages in forbearance as of January 31, 2021.
As we shared in our Forbearance 101 blog post last year, there is no impact to the score by going into forbearance. Although the removal of the forbearance comment does not have an impact, there are other factors associated with balance-to-original loan amount for installment accounts that may impact the score. Get the latest insights from Rosa in this video and see how you can use CreditXpert® What-If SimulatorTM to review potential impact to your borrower’s score.
Related Credit Insights
According to the Mortgage Bankers Association, 8.46% of mortgage loans were actively in forbearance at the end of May. Before the COVID-19 crisis impacted the economy, the forbearance rate was much lower at 0.25%.
Why isn’t my credit score higher? Why is my credit score so different across the bureaus? Why did my credit score change so much? These are some of the common questions clients ask mortgage professionals.