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Mortgage Delinquencies Decrease in Q4

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

For the survey, MBA servicers reported loans in forbearance as delinquent if the payment was not made based on the original terms of the mortgage. 

"Mortgage delinquencies descended in the final three months of 2021, reaching levels at or below MBA's survey averages dating back to 1979," said Marina Walsh, CMB, MBA's Vice President of Industry Analysis. "The fourth-quarter delinquency rate of 4.65% was 67 basis points lower than MBA's survey average of 5.32%. Furthermore, the seriously delinquent rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 2.83% in the fourth quarter, close to the long-term average of 2.80%." 

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

According to Walsh, economic forces have prevailed and pushed down unemployment, increased wage growth, and increased homeowner equity; support for post-forbearance loan workouts has also kept delinquencies at a minimum. 

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

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

The MBA noted that an estimated 705,000 homeowners were on forbearance plans as of December 31. 

About Author: Kyle G. Horst

Kyle G. Horst is a reporter for DS News and MReport. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at kyle.horst@thefivestar.com.
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