The Risk Assessment, Data Analysis, and Research (RADAR) Group reveals that most borrowers seeking loan modifications in the current market will not see their monthly payments reduced by their programs’ targeted amounts because of sharply rising mortgage interest rates.

While mortgage forbearances and delinquencies are normalizing at or below prepandemic levels, sharply rising mortgage interest rates mean that most borrowers seeking loan modifications in the current market will not see their monthly payments reduced by their existing programs’ targeted amounts. But there is a silver lining, as many borrowers have successfully come out of forbearance.