A recent report shows more folks are completing their mortgage payments on time. This is big news, according to Kenneth R. Harney of the Washington Post Writers Group. Harney believes the punctual payments benefits the entire economy because of the domino effect that one has on the other.
"The national delinquency rate on home loans hit the lowest level it’s been in 18 years as of the final quarter of 2018, according to data compiled by the Mortgage Bankers Association," according to Harney.
"Borrowers with conventional mortgages, those eligible for sale to investors Fannie Mae and Freddie Mac, are the best performers; roughly 97 percent of them are paying on time."
Interestingly enough, Harney cites increased regulation as one of the contributing factors to a decrease in mortgage delinquencies.
"Since 2010, stricter federal underwriting rules imposed on the mortgage industry have banned some of the lending industry’s previous worst habits, and required them to screen out high-risk borrowers — essentially limiting their customer base to people who can truly afford the mortgages they’re seeking," says Harney in his report.
"In the conventional market, that’s why Fannie Mae and Freddie Mac — the country’s two largest sources of mortgage money — have kept their average FICO credit scores near a relatively pristine 750, well above levels typical before the financial crisis."
To learn more about the increase in individuals who are paying their mortgage on time, click on the image above.