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74 NATIONAL SNAPSHOT Regional SERIOUS DELINQUENCIES ON THE CONDO FRONT Condo mortgages today have the lowest serious delinquency rate since 2007. e decline in local unemployment rates and rise in home prices have helped reduce the overall delinquency rate. e delinquency rate for condos is also lower than that of other single-family residence (SFR) mortgages (see Figure 1). e lower delinquency rate for condos suggests underwriting guidelines are stricter for condos compared to other SFRs. e delinquency rate for condos was higher than the rate for other SFRs during 2008 to 2012. As a result, the Government Sponsored Enterprises (GSEs) and Federal Housing Administration (FHA) tightened their lending standards. For instance, the current lending guidelines for condo mortgages not only focus on the borrower's creditworthiness and ability to repay but also on even better fiscal and physical health of the condo com- munity, such as more capital reserve and higher owner occupancy rates. A closer look reveals that today's delinquency rates are heavily influ- enced by older loans. e bulk of both condo and other SFR loans that were seriously delinquent in early 2019 were originated between 2003 and 2009 (Figure 2). About 63% of the condo loans that were seriously delin- quent in February 2019 were originated between 2003 and 2009 compared to just 27% originated between 2010 and 2018. Both condo and other SFR loans originated in 2007 had the highest delinquency rate, whereas loans originated in 2015 had the lowest delinquency rate. Figure 3 compares the serious delinquency pattern by origination year. Each line in the figure represents the serious delinquency rate for loans originated in a given year as a function of number of months since the loan was originated. Analyzing these vintages imparts three important trends. First, delinquency rates were much higher for all loan types origi- nated between 2006 and 2008. Performance of all types of loans started to improve gradually beginning with the 2009 vintage as the underwriting standards tightened and the economic recovery began mid-2009. Second, the delinquency rate for other SFR loans was higher than condo loans. ird, in general, condo and other SFR loans originated in 2015 and 2016 have performed the best, with the lowest 15-month delinquency rate in more than a decade.