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Despite Record Unemployment, Delinquencies are Still Down From Last Year
Thursday, May 14, 2020
The national delinquency rate rose
significantly in the first quarter of 2020, driven largely by a surge in the
early stage rates. The Mortgage Bankers Association said the rate of loans on one-to-four-unit
residential properties rose 59 bps (bps) compared to the fourth quarter of 2019
to a seasonally adjusted rate of 4.36 percent of all loans. This was still 6 bps
lower than the rate in the same quarter of last year. The delinquency rate
includes loans that are at least one payment past due but does not include
loans in the process of foreclosure. MBA's National Delinquency Survey
(NDS) found the 30-day delinquency rate rose to 2.67 percent, 50-bps growth that
matches the third quarter of 2017 as the highest quarterly increase in the NDS
series dating back to 1979. The 60-day delinquency rate increased 7 bps to 0.77
percent, and the 90-day or more past due delinquency bucket increased 3 bps to
0.93 percent. By loan type, the total delinquency
rate (which includes 30-day, 60-day, and 90-day or more past due) for
conventional loans increased 34 bps to 3.16 percent over the previous quarter,
the FHA rate was up 131 bps to 9.69 percent and the VA rate rose 101 bps to
4.65 percent. The FHA and VA rates were the highest since the fourth quarter of
2017 and the first quarter of 2015, respectively.
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