FHA Serious Delinquency Rate Looks to Have Steadied
While the Federal Housing Administration has made strides to lower the serious delinquency rates on loans, it looks like the decline has steadied. What was a once falling rate is now believed to have hit a plateau, though it only seems to be the trend for the months of July and August 2017.
"Loans 90-days delinquent, in foreclosure or involved in bankruptcies remained stable at 4.31% in August. The seasonally adjusted estimate was 5.2% a year ago," according to National Mortgage News.
"FHA product makes up about 17% of new originations but one-third of the distressed loans in the market, Altisource's analysis of FHA and Black Knight data shows."
That being said, experts believe that the volume of loans that the FHA is responsible for will increase in the next 1-2 years. This could drastically change these numbers.
For more on the FHA serious delinquency rate, click on the image above.