Serious delinquency rates across the country continue to fall. According to CoreLogic’s latest data, October 2022’s serious delinquency rate dropped to 1.2%. That’s a decrease of one percentage point from one year prior, and down three percentage points from August 2020.

The data indicate that the nation’s mortgage delinquency rates have “improved significantly” over the last year. But the serious delinquency rate for FHA loans was about five times higher than that of conventional loans. 

October 2022’s overall serious delinquency rates, as well as those for conventional loans, were lower than before the pandemic. But the serious delinquency rates for FHA and VA loans are still slightly higher than the pre-pandemic level.

Serious delinquency is defined as 90 days or more past due or in foreclosure proceedings.

“The serious delinquency rate for FHA and VA loans in November 2020 reached a high that surpassed even the peak seen post-Great Recession,” wrote Archana Pradhan, principal and economist at CoreLogic.        

Pradhan explained that homeowners with FHA loans are more likely to be low-to-moderate income workers, and the pandemic had a more adverse impact on this segment than those with conventional loans.

NEXT, connecting women in the mortgage industry to grow and advance their leadership and careers.

Stay in the know

Get the daily intel that impacts your customers, employees and market. 

Up NEXT eNewsletter — Industry news

Thank you!

Share This