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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 66 March 2025 J O U R N A L quarter of 2024 compared to one year ago, the composition of the delinquencies changed," said Marina Walsh, CMB, MBA's VP of Industry Analysis. "Conven- tional delinquencies remain near histor- ical lows, but FHA and VA delinquencies are increasing at a faster pace. By the end of the fourth quarter, the spread between the FHA and conventional delinquency rates reached 841 basis points, while the VA and conventional spread was 208 basis points." According to Walsh, while the labor market remains relatively strong and often tracks with mortgage performance, some of today's headwinds include inflationary pressures, lower personal savings rates, natural disasters, increas- ing consumer debt, higher tax and insurance payments, and higher debt-to- income ratios. All of these factors may be impacting government borrowers to a greater extent than conventional borrowers. "Government loans are also rolling to later stages of delinquency," Walsh added. "Compared to one year ago, the seriously delinquent rate rose 70 basis points for FHA loans and fifty-seven basis points for VA loans, but only two basis points for conventional loans." Key Findings: • Compared to last quarter, the sea- sonally adjusted mortgage delin- quency rate increased for all loans outstanding. By stage, the 30-day delinquency rate decreased nine basis points to 2.03%, the 60-day delinquency rate increased three basis points to 0.76%, and the 90- day delinquency bucket increased 11 basis points to 1.19%. • By loan type, the total delinquency rate for conventional loans de- creased by one basis point to 2.62% over the previous quarter. The FHA delinquency rate increased 57 basis points to 11.03%, and the VA delinquency rate increased 12 basis points to 4.70%. • On a year-over-year basis, total mort- gage delinquencies increased for all loans outstanding. The delinquency rate increased by one basis point for conventional loans, increased by 22 basis points for FHA loans, and increased by 63 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 process of foreclosure. The percentage of loans in the foreclo- sure process at the end of Q4 was 0.45%, remaining unchanged from Q3 2024 and two basis points lower than one year ago. • The nonseasonally adjusted seri- ously delinquent rate, the percent- age of loans that are 90 days or more past due or in the process of foreclosure, was 1.68%. It increased 13 basis points from the last quarter and increased 16 basis points from last year. The seriously delinquent rate increased five basis points for conventional loans, increased 49 While the labor market remains relatively strong and often tracks with mortgage performance, some of today's headwinds include inflationary pressures, lower personal savings rates, natural disasters, increasing consumer debt, higher tax and insurance payments, and higher debt-to- income ratios.