The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 3.45% of all loans outstanding at the end of Q3 2022, as found in a new report from The Mortgage Bankers Association (MBA).
According to MBA’s National Delinquency Survey, the delinquency rate was down 19 basis points from last quarter and down 143 basis points from one year ago.
Key highlights:
- By stage, the 30-day delinquency rate remained unchanged at 1.66%, the 60-day delinquency rate increased 4 basis points to 0.53%, and the 90-day delinquency bucket decreased 22 basis points to 1.27%.
- By loan type, the total delinquency rate for conventional loans decreased 12 basis points from the previous quarter to 2.52%. The FHA delinquency rate decreased 33 basis points to 8.52%, and the VA delinquency rate decreased by 51 basis points to 3.71%.
- On a year-over-year basis, total mortgage delinquencies decreased for all loans outstanding. The delinquency rate decreased by 103 basis points for conventional loans, decreased 282 basis points for FHA loans, and decreased 210 basis points for VA loans.
- The percentage of loans in the foreclosure process at the end of Q3 2022 was 0.56%, down 3 basis points from last quarter, and 10 basis points higher than last year. The percentage of loans on which foreclosure actions were started in Q3 fell by 3 basis points to 0.15%.
- The non-seasonally adjusted seriously delinquent rate (percentage of loans that are 90 days or more past due or in the process of foreclosure) was 1.90%. It decreased by 22 basis points from last quarter and decreased by 150 basis points from last year.
- The seriously delinquent rate decreased 18 basis points for conventional loans, decreased 38 basis points for FHA loans, and decreased 32 basis points for VA loans from the previous quarter. Compared to a year ago, it decreased by 96 basis points for conventional loans, decreased 393 basis points for FHA loans, and decreased 197 basis points for VA loans.
- The five states with the largest quarterly decreases in their overall delinquency rate were: Alaska (102 basis points), Hawaii (32 basis points), Maine (31 basis points), Rhode Island (29 basis points), and Connecticut (29 basis points).
Major takeaway:
“For the second quarter in a row, the mortgage delinquency rate fell to its lowest level since MBA’s survey began in 1979 – declining to 3.45%. Foreclosure starts and loans in the process of foreclosure also dropped in the third quarter to levels further below their historical averages,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “The relatively small number of seriously delinquent homeowners are working with their mortgage servicers to find foreclosure alternatives, including loan workouts that allow for home retention.”
For the full report, click here.
