In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Monday, March 27, 2023

Fannie Mae: Mortgage Serious Delinquency Rate Decreased in February

by Calculated Risk on 3/27/2023 04:23:00 PM

Fannie Mae reported that the Single-Family Serious Delinquency decreased to 0.62% in February from 0.64% in January. The serious delinquency rate is down from 1.11% in February 2022.  This is below the pre-pandemic levels.

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

The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59% following the housing bubble and peaked at 3.32% in August 2020 during the pandemic.

Fannie Freddie Seriously Delinquent RateClick on graph for larger image

By vintage, for loans made in 2004 or earlier (1% of portfolio), 2.04% are seriously delinquent (down from 2.11% in January). 

For loans made in 2005 through 2008 (1% of portfolio), 3.31% are seriously delinquent (down from 3.40%), 

 For recent loans, originated in 2009 through 2021 (98% of portfolio), 0.51% are seriously delinquent (down from 0.52%). So, Fannie is still working through a few poor performing loans from the bubble years.

Mortgages in forbearance were counted as delinquent in this monthly report, but they were not reported to the credit bureaus.