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Delinquency Rate Could Double Without More Federal Support
Tuesday, September 8, 2020
Mortgage delinquencies spiked in
June and the serious delinquency rate, loans 90 or more days past due but not in
foreclosure, reached its highest level in more than five years. CoreLogic in
its monthly loan performance report, said 7.1 percent of all mortgages nationwide
were at least 30 days past due, including those in foreclosure. This is 3.1
percentage points higher than the delinquency rate in June 2019. Further, the company predicts that, barring
additional government programs and support, serious delinquency rates could
nearly double from the June 2020 level by early 2022. Not only could millions
of families potentially lose their home, through a short sale or foreclosure,
but this also could create downward pressure on home prices - and consequently
home equity - as distressed sales are pushed back into the for-sale market.
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