MBA: Mortgage Delinquency Rate Edged Up in Q1


The mortgage delinquency rate for residential properties increased to 3.94% of all loans in the first quarter, up 6 basis points compared with the fourth quarter, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.

Compared with the first quarter of 2023, the delinquency rate was up 38 basis points.

The percentage of loans on which foreclosure actions were started in the first quarter remained unchanged at 0.14%.

“Overall mortgage delinquencies increased slightly in the first quarter of 2024, but not across all three of the major loan types,” says Marina Walsh, vice president of industry analysis for the MBA, in a statement. “Delinquencies declined for FHA loans, were relatively flat for conventional loans, and increased for VA loans.

“Notably, all three loan types saw an increase in delinquencies compared to one year ago,” Walsh says. “Higher unemployment, lower personal savings, increases in property taxes and insurance, and a run-up in credit card debt and delinquency contributed to conditions that would make it tougher for some homeowners to make their mortgage payments.

“At the end of 2023, the Department of Veterans Affairs encouraged mortgage servicers to implement a foreclosure moratorium until the end of May 2024,” Walsh adds. “With this pause came an increase in VA loans that remained delinquent, but not in foreclosure inventory.”

By stage, the 30-day delinquency rate increased 15 basis points to 2.25%, the 60-day delinquency rate decreased 6 basis points to 0.67%, and the 90-day delinquency bucket decreased 3 basis points to 1.02%.

Photo: Agê Barros

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