Mortgage delinquencies decline in fourth quarter

That number is down 23 basis points from the third quarter of 2021 and 208 basis points from a year ago.

For the investigation, MBA managers said loans on hold for forbearance were delinquent if payment was not made in accordance with the original terms of the mortgage.

“Mortgage delinquencies declined in the last three months of 2021, reaching levels at or below MBA survey averages dating back to 1979,” said Marina Walsh, CMB, vice president of industry analysis. of MBAs. “The fourth quarter delinquency rate of 4.65% was 67 basis points lower than the MBA survey average of 5.32%. 2.83% in the fourth quarter, close to the long-term average of 2.80%.”

“The quarters just before the COVID-19 pandemic represented some of the lowest delinquencies on record,” Walsh added. “Delinquencies are now approaching levels not seen since the first quarter of 2020, a testament to the strength of the U.S. labor market.”

According to Walsh, economic forces prevailed and lowered unemployment, increased wage growth, and increased owners’ net worth; support for post-forbearance loan restructurings has also kept defaults to a minimum.

The report found that the 30-day delinquency rate increased by 14 basis points to 1.65%, the 60-day delinquency rate increased by 4 basis points to 0.56 and the delinquency bracket to 90. days fell 41 basis points to 2.44%.

By loan type, the total default rate for conventional loans increased 3 basis points to 3.58% from the prior quarter. The FHA delinquency rate decreased 58 basis points to 10.76% and the VA delinquency rate decreased 57 basis points to 5.24%.

The MBA noted that about 705,000 owners were on forbearance plans as of December 31.

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