Chart of the Week–Seriously Delinquent Loans by Loan Type
According to the latest MBA National Delinquency Survey, the delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.99% of all loans outstanding at the end of the third quarter of 2025.
The delinquency rate was up 6 basis points from the second quarter of 2025 and up 7 basis points from one year ago. Meanwhile, the percentage of loans in the foreclosure process at the end of the third quarter was 0.50%, up 2 basis points from the second quarter of 2025 and 5 basis points higher than one year ago.
This Chart of the Week shows the non-seasonally adjusted seriously delinquent rate – the percentage of loans that are 90 days or more past due or in the process of foreclosure – was 1.61% in the third quarter, increasing 4 basis points from last quarter and 6 basis points from last year. By loan type, there were substantial differences in serious delinquencies. Since last year, the FHA seriously delinquent rate increased by almost 50 basis points, while the conventional seriously delinquent rate dropped by 4 basis points and remained near historic lows. The VA seriously delinquent rate saw a slight 4 basis point increase from one year ago.
The stressors on FHA homeowners include a softer labor market, other personal debt obligations, and increases in taxes, homeowners’ insurance and other fees that exacerbate already stretched affordability. Home price declines in some parts of the country may lessen the ability to sell or refinance. In addition, the ending of COVID-era FHA loss mitigation options and the recent government shutdown, while not contributing to the third quarter results, may affect future quarters.
