Chart of the Week: Mortgage Delinquency Rates and Spreads Across Loan Type

According to the latest results from MBA’s National Delinquency Survey (NDS), the delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 4.44% of all loans outstanding at the end of the first quarter of 2026. The delinquency rate was up 18 basis points from the fourth quarter of 2025 and up 40 basis points from one year ago.

Mortgage delinquencies increased on an annual basis, with conventional loan delinquencies relatively flat but with notable increases among FHA and VA loans.  As of the end of the first quarter, the delinquency rate for FHA loans was over 900 basis points higher than the conventional delinquency rate, and the VA delinquency rate was almost 225 basis points higher than the conventional delinquency rate. These are the widest spreads since 2021.

The results have been impacted by the expiration of pandemic-era FHA relief options at the end of September 2025 and by the implementation of required trial payment plans, during which FHA loans are still considered delinquent for survey purposes until a permanent workout is in place. Meanwhile, the industry also awaits the final guidance and implementation of the VA partial claim program to help veterans avoid foreclosure by covering missed payments.

-Anh Doan (adoan@mba.org); Marina B. Walsh, CMB (mwalsh@mba.org)