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Mortgage Delinquency Lowest in Nearly a Decade

Mortgage News

Delinquency on residential loans continued to improve, with the 30-day past-due rate falling to the lowest level in nearly a decade.

Last year closed out with a 30-day delinquency rate on residential loans, including the foreclosure inventory rate, at 6.54 percent.

Mortgage delinquency subsided compared to Sept. 30, 2015, when the non-current rate on home loans came in at 6.87 percent.

The loan performance details were spelled out in the National Delinquency Survey Q4 2015 from the
Mortgage Bankers Association.

An even bigger improvement was made since Dec. 31, 2014, a point when the non-current rate was
7.95 percent.

The non-current rate on just prime mortgages fell 19 BPS from the end of the third quarter to 3.84 percent.

Subprime delinquency
improved 74 BPS to 23.40 percent as of the fourth-quarter 2015.

Mortgages insured by the Federal Housing Administration had a non-current rate of 11.62 percent, worsening six BPS from Sept. 30, 2015.

Department of Veterans Affairs-guaranteed loans saw delinquency tumble 39 BPS to 5.46 percent as of the end of last year.

Excluding the foreclosure inventory, the 30-day rate on all residential loans was
4.77 percent as of Dec. 31, 2015, down from 4.99 percent three months earlier and 5.68 percent a year earlier.

The 30-day rate has not been this low since the third-quarter 2006 — when it was 4.67 percent.

Thirty-day delinquency as of the most-recent date was 9.22 percent in Mississippi — higher than in any other state.
Alabama had a 7.12 percent rate, followed by 6.65 percent in Indiana, 6.60 percent in Georgia and 6.58 percent in Pennsylvania.

At 2.24 percent, North Dakota had the lowest non-current rate.

The U.S. foreclosure rate fell to 1.77 percent from 1.88 percent at the end of September and sank from 2.27 percent at the end of 2014.

The last time the foreclosure rate was this low was in the third-quarter 2007, when it stood at 1.69 percent.

New Jersey had the highest foreclosure rate as of the end of last year: 6.12 percent. Next was New York’s 4.49 percent, then Florida’s 3.10 percent, the District of Columbia’s 2.93 percent and Maine’s 2.93 percent.

The lowest foreclosure rate — 0.56 percent — was in Colorado.

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