Mortgage Delinquency Rates Decline in Q3

According to the Mortgage Bankers Association’s (MBA) National Delinquency Survey, which was released on Thursday (11-10-22), the delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 3.45% of all outstanding loads at the end of 22Q3.

The delinquency rate was down 19 basis points from 22Q2, and down 143 basis points from 21Q2. The MBA notes that for the purpose of the survey, they asked servicers to report loans in forbearance as delinquent if the payment was not made based on the original terms of the mortgage.

Providing additional background and her analysis, Marian Walsh, MBA’s Vice President of Industry Analysis, said:

“For the second quarter in a row, the mortgage delinquency rate fell to its lowest level since MBA’s survey began in 1979—declining to 3.45 percent. Foreclosure starts and loans in the process of foreclosure also dropped in the third quarter to levels further below their historical averages. The relatively small number of seriously delinquent homeowners are working with their mortgage servicers to find foreclosure alternatives, including loan workouts that allow for home retention.”