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19 MORTGAGE DELINQUENCIES TICK UP IN Q4 OF 2022 e delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.96% of all loans outstanding at the end of Q4 of 2022, according to the Mortgage Bankers Association's (MBA) National Delinquency Survey. e delinquency rate was up 51 basis points from Q3 of 2022 but still down 69 basis points from one year ago. e percentage of loans on which foreclosure actions were started in Q4 fell by 1 basis point to 0.14%. "As expected, the overall national mortgage delinquency rate increased in Q4 of 2022 from its previous quarterly survey low," said Marina Walsh, CMB, MBA's VP of Industry Analysis. "e weaker economy and ongoing inflationary pressures contributed to the uptick in delinquen- cies. e delinquency rate—while still low—in- creased from the previous quarter across all loan types and across all stages of delinquency." According to Walsh, for the past 15 years, mortgage delinquencies have tracked very closely with employment conditions. Despite recent indicators of resiliency in the job market, includ- ing the unemployment rate declining to 3.4% in January, MBA still forecasts for slower hiring and rising unemployment, with the rate rising to 5.2% by the end of the year. is will likely mean further increases in mortgage delinquencies. Walsh added, "Notwithstanding the fourth-quarter increase in mortgage delinquen- cies, the foreclosure starts rate of 0.14% was well below the historical quarterly average of 0.40%. Many distressed homeowners have loss mitiga- tion options available to them and have accu- mulated home equity, which can ease financial hardship and avert foreclosure actions." Key findings of MBA's Q4 of 2022 National Delinquency Survey: Compared to last quarter, the seasonally adjusted mortgage delinquency rate increased for all loans outstanding. By stage, the 30-day delin- quency rate increased 26 basis points to 1.92%, the 60-day delinquency rate increased 13 basis points to 0.66%, and the 90-day delinquency bucket increased 11 basis points to 1.38%. By loan type, the total delinquency rate for conventional loans increased 26 basis points to 2.78% over the previous quarter. e FHA delinquency rate increased 209 basis points to 10.61%, and the VA de- linquency rate increased by 45 basis points to 4.16%. On a year-over-year basis, total mortgage delinquencies decreased for all loans outstanding. e delinquency rate decreased by 80 basis points for conventional loans, decreased 15 basis points for FHA loans, and decreased 108 basis points for VA loans from the previous year. e delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. e percentage of loans in the foreclosure process at the end of Q4 was 0.57%, up 1 basis point from the third quarter of 2022 and 15 basis points higher than one year ago. e nonseasonally adjusted seriously delinquent rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 1.89%. It decreased by 1 basis point from last quarter and decreased by 94 basis points from last year. e seriously delinquent rate decreased 5 basis points for conventional loans, increased 14 basis points for FHA loans, and decreased 8 basis points for VA loans from the previous quarter. Compared to a year ago, the seriously delinquent rate decreased by 68 basis points for conventional loans, decreased 208 basis points for FHA loans and decreased 139 basis points for VA loans. e five states with the largest quarterly in- creases in their overall delinquency rate were: Lou- isiana (77 basis points), Florida (74 basis points), Indiana (62 basis points), West Virginia (55 basis points), and Mississippi (55 basis points). Journal