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Wednesday, April 01, 2020

Fannie Mae: Mortgage Serious Delinquency Rate Declined in February, Lowest Since 2007

by Calculated Risk on 4/01/2020 12:07:00 PM

Fannie Mae reported that the Single-Family Serious Delinquency was declined to 0.65% in February, from 0.66% in January. The serious delinquency rate is down from 0.76% in February 2019.

These are mortgage loans that are "three monthly payments or more past due or in foreclosure". 

This is the lowest serious delinquency rate for Fannie Mae since June 2007.

The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59%.

Fannie Freddie Seriously Delinquent RateClick on graph for larger image

By vintage, for loans made in 2004 or earlier (2% of portfolio), 2.46% are seriously delinquent. For loans made in 2005 through 2008 (4% of portfolio), 4.07% are seriously delinquent, For recent loans, originated in 2009 through 2018 (94% of portfolio), only 0.35% are seriously delinquent. So Fannie is still working through a few poor performing loans from the bubble years.

I expect the serious delinquency rate will increase in a few months due to COVID-19.

Note: Freddie Mac reported earlier.