Thursday, April 30, 2020

Fannie Mae: Mortgage Serious Delinquency Rate Increased Slightly in March

by Calculated Risk on 4/30/2020 04:10:00 PM

Fannie Mae reported that the Single-Family Serious Delinquency increased to 0.66% in March, from 0.65% in February. The serious delinquency rate is down from 0.74% in March 2019.

IMPORTANT: These are mortgage loans that are "three monthly payments or more past due or in foreclosure".  So it will take three months for the impact of COVID-19 to show up in this series.

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), 2.48% are seriously delinquent. For loans made in 2005 through 2008 (3% of portfolio), 4.11% are seriously delinquent, For recent loans, originated in 2009 through 2018 (95% 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.