Get Your Mortgage Rate Quote in Just 30 Seconds

Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below.

FHA, VA Delinquencies Rise as Overall Rate Barely Improves

FHA, VA Delinquencies Rise as Overall Rate Barely Improves

Deliquencies down, foreclosures up, says industry organization

June 23, 2003


As overall delinquencies on home loans edged down during the first quarter, the share of homes in foreclosure and government-insured mortgage delinquencies rose, according to a new industry report.

In its quarterly National Delinquency Survey, the Mortgage Bankers Association of America (MBA) reported overall deliquencies down one basis point, to 4.52 percent, for the first quarter 2003, on a seasonally-adjusted basis. The organization attributed the overall decline to the fact that first quarter 2003’s sample had a smaller percentage of Federal Housing Authority (FHA) loans, than the prior quarter.

According to the report, even though the overall percentage was down, each loan type included in the survey showed increased deliquencies. The survey said that FHA loans were 11.65 percent delinquent, up 20 basis points from the prior quarter, Veteran’s Administration loans were 7.89 percent delinquent, up 7 basis points over fourth quarter 2002, and conventional loans were 3.10 percent delinquent, up two basis points from the prior quarter, all on a seasonally-adjusted basis.

MBA chief economist and senior vice president Doug Duncan said in the press release that deliquencies should decline in the future.

“In the second half of the year, improving economic growth and increases in employment are expected as the benefits of the tax cuts in the President’s economic stimulus package, along with the ongoing economic benefits of a strong refinance market, are realized. An improved economy and job market should result in gradually declining delinquency rates,” he said.

Foreclosures registered, on a seasonally-adjusted basis, 1.20 percent of all loans in first quarter 2003, up two basis points from the prior quarter, according to the survey. These loans are calculated separately from deliquencies, the survey said.

All loan types reported a rise in foreclosure, the survey said. FHA loans reported 2.90 percent in foreclosure, up 12 basis points from the prior quarter; VA loans reported 1.63 percent in foreclosure, up five basis points from fourth quarter 2002; and conventional loans reported .89 percent in foreclosure, up three basis points over the prior quarter, all on a seasonally-adjusted basis, according to the survey.

Foreclosures begun during first quarter 2003 also increased across the board for all loan types, with the overall percentage reported at .37 percent, with FHA loans reporting the highest percentage of new foreclosures, .87 percent, on a seasonally-adjusted basis, the survey said.

Anne Lineberry is‘s editor. She previously worked as an online editor/producer for and on the Metropolitan desk for the print edition of The Dallas Morning News. Email Anne at

Popular posts

7 Refinance Strategies
7 Refinance Strategies

Refinance to a lower interest rate: If interest rates have dropped since you took out your original mortgage, refinancing to a lower rate can help you save money on your monthly payments and reduce the overall cost of your loan. Refinance to a shorter loan term:...

7 Refinance Strategies
Is Refinancing With Your Present Lender Preferable?

Do Not Accept the First Refinancing Offer You Receive Homeowners should not accept the first refinancing rate provided to them. This is particularly important if you are applying with your existing lender. Some mortgage lenders have mechanisms in place that prioritize...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

Fannie Mae Profile

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC...