The quarterly non-current mortgage rate surged 58 basis points, with government-insured performance taking the biggest beating. Much of the blame was ascribed to the effects from the recent hurricanes.
Single-family loans that were at least 30 days late or in the foreclosure inventory accounted for
6.11 percent of all outstanding mortgages as of Sept. 30.
That was worse than as of mid-2017, when the non-current rate was 5.53 percent. The rate also deteriorated from the same date last year, when it landed at 6.07 percent.
Those details and more were provided to Mortgage Daily by the Mortgage Bankers Association in its National Delinquency Survey Q3 2017.
The non-current rate on conventional mortgages was 5.12 percent, jumping 46 basis points from the second quarter. Delinquency on loans insured by the Federal Housing Administration was 11.16 percent — skyrocketing 136 BPS — while the rate climbed 48 BPS to 5.19 percent on mortgages guaranteed by the Department of Veterans Affairs.
Reflected in the most-recent overall non-current rate was a seasonally adjusted 4.88 percent 30-day rate excluding foreclosures. The 30-day rate soared from 4.24 percent as of June 30 and was also worse than 4.52 percent on Sept. 30, 2016.
In Mississippi, the 30-day rate as of the third-quarter 2017 was 8.83 percent — higher than any other state. Next was Louisiana’s 7.65 percent, then Texas’ 7.38 percent, Florida’s 7.02 percent and Alabama’s 6.54 percent.
“Florida, Texas, neighboring states, as well as devastated Puerto Rico, saw substantial increases in their past due rates,” MBA Vice President of Industry Analysis Marina Walsh said in an accompanying announcement. “While forbearance is in place for many borrowers affected by these storms, our survey asks servicers to report these loans as delinquent if the payment was not made based on the original terms of the mortgage regardless of any forbearance plans in place.”
She added that it will take as many as four quarters for the impact from the recent hurricanes to dissipate.
But Walsh noted that other factors — such as how September ending on a Saturday caused payment postings to be delayed until the following month — also played a role in the overall deterioration. In addition, it’s not unusual for delinquency rates that were already at historic lows to tick higher.
“We see loan performance as still healthy and strong, supported by a positive employment and wage outlook,” Walsh concluded.
The lowest 30-day rate in the nation was in Oregon: 2.38 percent.
Also included in the Sept. 30, 2017, U.S. delinquency ratio was a 1.23 percent foreclosure inventory rate, down 6 basis points from three months earlier and 32 BPS better than a year earlier.
New Jersey’s 3.97 percent foreclosure rate was higher than any other state. Next was New York’s 3.65 percent, then Maine’s 2.58 percent, Hawaii’s 2.30 percent and New Mexico’s 2.06 percent.
Colorado’s 0.32 percent foreclosure rate was the country’s lowest.
