The Mortgage Bankers Association’s (MBA) National Delinquency Survey results maintain 2021 second quarter mortgage delinquencies declined.
Per the analysis, the delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 5.47 percent of all loans outstanding — also indicating the delinquency rate fell 91 basis points from the first quarter of 2021 and showed a decrease of 275 basis points from last year.
“Mortgage delinquencies across all loan types — conventional, FHA, and VA — reached their lowest levels since the first quarter of 2020,” Marina Walsh, MBA’s vice president of Industry Analysis, said. “The drop in the delinquency rate for FHA loans and VA loans was the largest quarterly decline for both in the history of MBA’s survey dating back to 1979.”
The survey’s scope of work, per authorities, involved the MBA requesting servicers report loans in forbearance as delinquent if the payment was not made based on the original mortgage terms.
“Much of the second-quarter improvement can be traced to later-stage delinquent loans — those 90 days or past due, but not in foreclosure,” Walsh said. “In fact, the 90-day delinquency rate dropped by 72 basis points, which is another record decline in the survey. It appears that borrowers in later stages of delinquency are recovering due to several factors, including improved employment and other economic conditions, the availability of home retention workout options after forbearance, and a strong housing market that is bringing additional alternatives to distressed homeowners.”