Florida, Texas, and Puerto Rico recorded substantial increases in past-due rates
Mortgage loan delinquencies increased during the third quarter, driven by recent hurricanes that impacted a number of states, according to the National Delinquency Survey released by the Mortgage Bankers Association.
The survey found that 4.88% of all mortgages on one- to four-unit residential properties were delinquent on a seasonally adjusted basis at the end of the quarter, an increase of 64 basis points from the second quarter and up 36 basis points from the third quarter of 2016.
Despite the increase in delinquencies, the third quarter posted a decrease in initiations of foreclosure actions. During the period, foreclosures were initiated on 0.25% of all loans, down one basis point from the prior quarter and five basis point year over year.
At the end of the quarter, 1.23% of all loans were in the foreclosure process, down six basis points from the second quarter 32 basis points from the third quarter of 2016.
The share of seriously delinquent mortgages rose to 2.52% during the quarter, up by three basis points from the previous quarter. However, the rate fell 44 basis points year over year.
"In the third quarter of 2017, the overall delinquency rate rose by 64 basis points over the previous quarter, with the 30-day delinquency rate accounting for 50 basis points of this variance,” said Marina Walsh, MBA's vice president of industry analysis. “Hurricanes Harvey, Irma and Maria caused disruptions and destruction in numerous states. Florida, Texas, neighboring states, as well as devastated Puerto Rico, saw substantial increases in their past-due rates. While forbearance is in place for many borrowers affected by these storms, our survey asks servicers to report these loans as delinquent if the payment was not made based on the original terms of the mortgage regardless of any forbearance plans in place.”
Related stories:
Serious delinquencies, foreclosures at decade low
Household debt continues higher, mortgages reach $8.74 trillion
The survey found that 4.88% of all mortgages on one- to four-unit residential properties were delinquent on a seasonally adjusted basis at the end of the quarter, an increase of 64 basis points from the second quarter and up 36 basis points from the third quarter of 2016.
Despite the increase in delinquencies, the third quarter posted a decrease in initiations of foreclosure actions. During the period, foreclosures were initiated on 0.25% of all loans, down one basis point from the prior quarter and five basis point year over year.
At the end of the quarter, 1.23% of all loans were in the foreclosure process, down six basis points from the second quarter 32 basis points from the third quarter of 2016.
The share of seriously delinquent mortgages rose to 2.52% during the quarter, up by three basis points from the previous quarter. However, the rate fell 44 basis points year over year.
"In the third quarter of 2017, the overall delinquency rate rose by 64 basis points over the previous quarter, with the 30-day delinquency rate accounting for 50 basis points of this variance,” said Marina Walsh, MBA's vice president of industry analysis. “Hurricanes Harvey, Irma and Maria caused disruptions and destruction in numerous states. Florida, Texas, neighboring states, as well as devastated Puerto Rico, saw substantial increases in their past-due rates. While forbearance is in place for many borrowers affected by these storms, our survey asks servicers to report these loans as delinquent if the payment was not made based on the original terms of the mortgage regardless of any forbearance plans in place.”
Related stories:
Serious delinquencies, foreclosures at decade low
Household debt continues higher, mortgages reach $8.74 trillion
