The rate of mortgage delinquencies slipped in the first three months of 2017 according to new data from the Mortgage Bankers Association
The rate of mortgage delinquencies slipped in the first three months of 2017 according to new data from the Mortgage Bankers Association.
Its National Delinquency Survey reveals that the rate for one-to-four unit residential properties was a seasonally-adjusted 4.71% of all mortgage loans, down 9 basis points from the last quarter of 2016 and down 6 basis points from the first three months of 2016.
"Mortgage delinquencies decreased overall in the first quarter of 2017, driven by a drop in both the FHA and VA delinquency rates from the previous quarter as the conventional delinquency rate held constant,” explained Marina Walsh, MBA's Vice President of Industry Analysis.
With growth in employment starting the year with a positive trend and wage growth increasing, Walsh says that the economic fundamentals have helped support the performance of all mortgage loan types.
There was an increase of 2 basis points in the percentage of loans entering the foreclosure process compared to the previous quarter but the 0.30% level is 5 basis points lower than in the first quarter of 2016.
Serious delinquencies continued lower to 2.76%, with a 37 basis point drop from the previous quarter and a decline of 53 basis points from a year earlier.
"We saw an increase in foreclosure starts for the first time since the fourth quarter of 2014, but this increase was accompanied by a sizable drop in loans that were 90 days or more past due,” Walsh said. “It is likely that legacy distressed loans were held in the late stage-delinquency bucket by factors such as resolution attempts and state-specific requirements, before eventually going into foreclosure status. All 50 states and the District of Columbia saw a decrease in the 90-day or more delinquency rate.”
Its National Delinquency Survey reveals that the rate for one-to-four unit residential properties was a seasonally-adjusted 4.71% of all mortgage loans, down 9 basis points from the last quarter of 2016 and down 6 basis points from the first three months of 2016.
"Mortgage delinquencies decreased overall in the first quarter of 2017, driven by a drop in both the FHA and VA delinquency rates from the previous quarter as the conventional delinquency rate held constant,” explained Marina Walsh, MBA's Vice President of Industry Analysis.
With growth in employment starting the year with a positive trend and wage growth increasing, Walsh says that the economic fundamentals have helped support the performance of all mortgage loan types.
There was an increase of 2 basis points in the percentage of loans entering the foreclosure process compared to the previous quarter but the 0.30% level is 5 basis points lower than in the first quarter of 2016.
Serious delinquencies continued lower to 2.76%, with a 37 basis point drop from the previous quarter and a decline of 53 basis points from a year earlier.
"We saw an increase in foreclosure starts for the first time since the fourth quarter of 2014, but this increase was accompanied by a sizable drop in loans that were 90 days or more past due,” Walsh said. “It is likely that legacy distressed loans were held in the late stage-delinquency bucket by factors such as resolution attempts and state-specific requirements, before eventually going into foreclosure status. All 50 states and the District of Columbia saw a decrease in the 90-day or more delinquency rate.”
