by Calculated Risk on 11/10/2023 03:39:00 PM
From the MBA: Mortgage Delinquencies Increase in the Third Quarter of 2023
The delinquency fee for mortgage loans on one-to-four-unit residential properties elevated to a seasonally adjusted fee of three.62 p.c of all loans excellent on the finish of the third quarter of 2023, in accordance with the Mortgage Bankers Association’s (MBA) National Delinquency Survey.
The delinquency fee was up 25 foundation factors from the second quarter of 2023 and up 17 foundation factors from one yr in the past. The share of loans on which foreclosures actions have been began within the third quarter rose by 1 foundation level to 0.14 p.c.
“The national mortgage delinquency rate increased in the third quarter from the record survey low reached in the second quarter of this year, with an uptick in delinquencies across all loan types – conventional, FHA, and VA,” mentioned Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “The increase was driven entirely by a rise in earliest-stage delinquencies – those 30-days and 60-days past due. Later-stage delinquencies – those 90 days or more past due – declined to the lowest level since the first quarter of 2020.”
Added Walsh, “The decline in later-stage delinquencies, along with a foreclosure starts rate of 0.14 percent – which is well below the historical quarterly average of 0.40 percent – suggest that distressed homeowners may be utilizing available loss mitigation options that prevent a foreclosure start. Additionally, accumulated home equity may also be enabling some homeowners to sell their homes well before foreclosure becomes a possibility.”
emphasis added
This graph reveals the p.c of loans delinquent by days late. Overall delinquencies elevated in Q3.
From the MBA:
Compared to final quarter, the seasonally adjusted mortgage delinquency fee elevated for all loans excellent. By stage, the 30-day delinquency fee elevated 28 foundation factors to 2.03 p.c, the 60-day delinquency fee elevated 7 foundation factors to 0.62 p.c, and the 90-day delinquency bucket decreased 9 foundation factors to 0.98 p.c.
…
The delinquency fee contains loans which can be a minimum of one fee late however doesn’t embrace loans within the means of foreclosures. The share of loans within the foreclosures course of on the finish of the third quarter was 0.49 p.c, down 4 foundation factors from the second quarter of 2023 and down 7 foundation factors decrease than one yr in the past. This is the bottom foreclosures stock fee since fourth-quarter 2021.
The sharp enhance in 2020 within the 90-day bucket was as a consequence of loans in forbearance (included as delinquent, however not reported to the credit score bureaus).
The p.c of loans within the foreclosures course of decreased year-over-year in Q3 even with the top of the foreclosures moratoriums and are traditionally low.
