MBA study explores mortgage delinquencies

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The National Mortgage Bankers Association (MBA) National Mortgage Delinquency Survey shows that mortgage delinquencies declined in the second quarter of 2021.

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According to the analysis, the delinquency rate on residential mortgages with one to four apartments declined to a seasonally adjusted 5.47 percent of all outstanding loans, which also indicates that the delinquency rate has dropped by 91 basis points since the first quarter of 2021. and showed a decrease of 275 basis points compared to last year.

“Mortgage delinquencies across all loan types — conventional, FHA and VA — have reached their lowest level since Q1 2020,” said Marina Walsh, MBA vice president of industry analysis. “The decline in FHA and VA loan delinquencies was the largest quarterly decline for both in the history of the 1979 MBA study.”

The scope of the research, according to the authorities, included an MBA asking maintenance staff to report a loan deferred as overdue if payment was not made based on the original mortgage terms.

“To a large extent, the improvement in the second quarter can be attributed to overdue loans at later stages – in those 90 days or delays, but not in the loss of foreclosures,” Walsh said. “In fact, the 90-day delinquency rate fell 72 basis points, another record drop in the study. Borrowers in later stages of delinquency appear to be recovering thanks to several factors, including improved employment and other economic conditions, the availability of home recovery options after abstinence, and a strong housing market that provides additional alternatives to troubled homeowners. ”

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