BY BRAD BECKETT ON NOVEMBER 24, 2020
According to the latest Mortgage Bankers Association's National Delinquency Survey, the delinquency rate for mortgage loans on 1-4-unit residential properties at the end of Q3 decreased 57 basis points to a seasonally adjusted rate of 7.65% of all loans outstanding. Click here to read more.
The MBA says the decrease was driven by a sharp decline in newer 30-day delinquencies and 60-day delinquencies. However, they caution that later-stage delinquencies continued to grow, reaching their highest level since Q4 of 2013. Indeed…
“While the overall delinquency rate has improved from the previous quarter, many homeowners remain in distress. Another wave of COVID-19 cases could slow or halt the recovery in some areas. Meanwhile, the passage of another stimulus package is still uncertain. Despite this ongoing concern, steady home-price gains and homeowner equity accumulation seen in most of the country in the last several years potentially work in favor of borrowers in distress.”