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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 60 June 2024 J O U R N A L MULTIPLE MORTGAGE DELINQUENCY TYPES INCREASE YOY P eople of all generations bought much fewer homes in 2023 than the previous year, as rising hous- ing prices and mortgage rates reduced buyers' budgets—as 2023 was the least cheap year on record. This is according to the Mortgage Bankers Association's (MBA) National Delinquency Survey. Historically low inventory also hampered sales. The delinquency rate increased 6 ba- sis points from the fourth quarter of 2023 and 38 basis points from a year ago. The percentage of loans for which foreclosure proceedings were initiated in the first quarter remained steady at 0.14%. "Overall mortgage delinquencies increased slightly in the first quarter of 2024, but not across all three of the major loan types. Delinquencies declined for FHA loans, were relatively flat for conventional loans, and increased for VA loans," said Marina Walsh, CMB, MBA's VP of Industry Analysis. "Notably, all three loan types saw an increase in delinquencies compared to one year ago. 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." Key Findings of MBA's Q1 of 2024 National Delinquency Survey » Compared to last quarter, the season- ally adjusted mortgage delinquency rate increased for all loans outstand- ing. By stage, the 30-day delinquency rate increased 15 basis points to 2.25%, Default Servicing 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%. » By loan type, the total delinquency rate for conventional loans increased 1 basis point to 2.62% over the previous quarter. The FHA delinquency rate decreased 42 basis points to 10.39%, and the VA delinquency rate increased by 59 basis points to 4.66%. » On a year-over-year basis, total mort- gage delinquencies increased for all loans outstanding. The delinquency rate increased by 18 basis points for conventional loans, increased 112 basis points for FHA loans, and increased 68 basis points for VA loans from the previous year. » The delinquency rate includes loans that are at least one payment past due but does not include loans in the pro- cess of foreclosure. The percentage of loans in the foreclosure process at the end of Q1 was 0.46%, down one basis point from Q4 of 2023 and 11 basis points from one year ago. » The non-seasonally adjusted seriously delinquent rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 1.44%. It decreased by 8 basis points from last quarter and decreased by 29 basis points from last year. The seriously delinquent rate decreased 6 basis points for conventional loans, de- creased 24 basis points for FHA loans, and remained unchanged for VA loans from the previous quarter. Compared to a year ago, the seriously delinquent rate decreased by 21 basis points for conventional loans, decreased 83 basis points for FHA loans, and decreased 25 basis points for VA loans. » The states with the largest year-over- year increases in their overall delin- quency rate were Louisiana (96 basis points), South Dakota (96 basis points), New Mexico (71 basis points), Texas (66 basis points), Georgia (56 basis points), and North Dakota (56 basis points). "At the end of 2023, the Department of Veterans Affairs encouraged mortgage servicers to implement a foreclosure moratorium until the end of May 2024,"