Serious Delinquency Rates Highest Since Great Recession
Thanks to the economic impact of COVID millions of American homeowners are struggling to keep up with their mortgage payments. As a result, the mortgage delinquency rate has soared according to CoreLogic Loan Performance Insights Report (CoreLogic)
As of October 2020, the serious delinquency rates for Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA), and conventional loans were 11.7%, 6.1%, and 3.1%, respectively (Figure 1). The serious delinquency rate increased for all loan types in October 2020 compared with October 2019. In addition, the serious delinquency rate for FHA and VA loans reached a high, surpassing the highs seen post-Great Recession. The serious delinquency rate for FHA loans was above the 2012 delinquent levels by 2 percentage points.