Mortgage Bankers Association
08/15/2024 | News release | Distributed by Public on 08/15/2024 08:24
Mortgage Delinquencies Increase in the Second Quarter of 2024
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WASHINGTON, D.C. (August 15, 2024)- The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.97 percent of all loans outstanding at the end of the second quarter of 2024, according to the Mortgage Bankers Association's (MBA) National Delinquency Survey.
The delinquency rate was up 3 basis points from the first quarter of 2024 and up 60 basis points from one year ago. The percentage of loans on which foreclosure actions were started in the second quarter fell by 1 basis point to 0.13 percent.
"Mortgage delinquencies increased across all product types compared to this time last year," said Marina Walsh, CMB, MBA's Vice President of Industry Analysis. "While delinquencies are still low by historical standards, the recent increase corresponds with a rising unemployment rate, which has historically been closely correlated with mortgage performance."
Added Walsh, "The composition of mortgage delinquencies by stage has evolved. As of the second quarter of 2024, the earliest stage delinquencies - those loans 60 days or less delinquent - accounted for the entire increase from the previous year. Meanwhile, seriously delinquent loans - those loans 90 days or more delinquent or in foreclosure - fell to their lowest levels since 1984 as servicers are helping at-risk homeowners avoid foreclosures through loan workout options that can mitigate temporary distress."
Key findings of MBA's Second Quarter of 2024 National Delinquency Survey:
- Compared to last quarter, the seasonally adjusted mortgage delinquency rate increased for all loans outstanding. By stage, the 30-day delinquency rate increased 1 basis point to 2.26 percent, the 60-day delinquency rate increased 3 basis points to 0.70 percent, and the 90-day delinquency bucket decreased 1 basis point to 1.01 percent.
- By loan type, the total delinquency rate for conventional loans increased 2 basis points to 2.64 percent over the previous quarter. The FHA delinquency rate increased 21 basis points to 10.60 percent, and the VA delinquency rate decreased 3 basis points to 4.63 percent.
- On a year-over-year basis, total mortgage delinquencies increased for all loans outstanding. The delinquency rate increased 35 basis points for conventional loans, increased 165 basis points for FHA loans and increased 93 basis points for VA loans from the previous year.
- The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the second quarter was 0.43 percent, down 3 basis points from the first quarter of 2024 and 10 basis points lower than one year ago.
- The non-seasonally adjusted seriously delinquent rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 1.43 percent. It decreased 1 basis point from last quarter and decreased 18 basis points from last year. The seriously delinquent rate decreased 2 basis points for conventional loans, decreased 1 basis point for FHA loans, and increased 6 basis points for VA loans from the previous quarter. Compared to a year ago, the seriously delinquent rate decreased 13 basis points for conventional loans, decreased 54 basis points for FHA loans and decreased 8 basis points for VA loans.
- The five states with the largest quarterly increases in their overall delinquency rate were: Mississippi (58 basis points), Louisiana (54 basis points), Indiana (53 basis points), Ohio (53 basis points) and West Virginia (52 basis points).
For the purposes of the survey, MBA asks servicers to report loans in forbearance as delinquent if the payment was not made based on the original terms of the mortgage.
NOTE: For non-seasonally-adjusted (NSA) supplemental information on the performance of servicing portfolios by investor type, loans in forbearance by investor type, and the status of post-forbearance workouts, as well as servicer call volume metrics, please refer to MBA's Monthly Loan Monitoring Survey at www.mba.org/lms. July 2024 results will be released on Monday, August 19, 2024.