Mortgage Delinquencies Decline in Q3 2020

According to the Mortgage Bankers Association’s (MBA) National Delinquency Survey at the end of Q3 the delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 7.65% of all loans outstanding. The delinquency rate was down 57 basis points from the second quarter of 2020 and up 368 basis points from one year ago. For the purposes of the survey, MBA asks servicers to report loans in forbearance as delinquent if the payment was not made based on the original terms of the mortgage. The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the third quarter was 0.59%, down 9 basis points from the second quarter of 2020 and 25 basis points lower than one year ago. This is the lowest foreclosure inventory rate since the second quarter of 1982.