Fannie Mae: Mortgage Serious Delinquency Rate Decreased in February

Housing Market Bill McBride March 27, 2023

Fannie Mae reported that 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.

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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 the 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.