Delinquencies stay nicely beneath pre-pandemic norms

by Calculated Threat on 10/24/2025 04:00:00 PM

From Intercontinental Trade: ICE First Take a look at Mortgage Efficiency: Mortgage Efficiency Stays Robust as FHA Foreclosures Emerge

Intercontinental Trade, Inc. (NYSE:ICE) … right this moment launched the September 2025 ICE First Take a look at mortgage delinquency, foreclosures and prepayment developments.

The information exhibits that general mortgage efficiency stays traditionally sturdy, with each delinquencies and foreclosures exercise remaining beneath long-term averages. Whereas some shifts are rising amongst government-backed mortgage segments, these developments largely characterize a normalization of market dynamics slightly than broad-based weak point.

“The mortgage market stays remarkably resilient, with mortgage efficiency persevering with to carry up nicely,” stated Andy Walden, Head of Mortgage and Housing Market Analysis at ICE. “Delinquency charges improved in September, and at the same time as we see will increase in exercise amongst FHA loans, we’re largely returning to extra typical ranges following a number of years of artificially low foreclosures volumes.”

Key takeaways from this month’s findings embrace:

• Delinquencies stay nicely beneath pre-pandemic norms: The nationwide delinquency fee fell by 2 foundation factors (bps) in September to three.42%, down 6 bps from the identical time final 12 months and 58 bps beneath its September 2019 pre-pandemic stage.

• Power throughout delinquency bands in September: Each early-stage (30-day) and late-stage (90+ day) delinquencies improved month-over-month, because the overwhelming majority of debtors stay present on their mortgage funds.

• Non-current charges improved for many traders: The non-current fee (delinquencies plus lively foreclosures) declined year-over-year amongst GSE (-3 bps), VA (-4 bps) and portfolio-held loans (-17 bps). FHA loans have been the notable exception, rising by 44 bps from final 12 months’s ranges.

• Foreclosures exercise is returning to regular ranges: There have been 103,000 foreclosures begins in Q3 2025, a 23% improve from the identical interval final 12 months, however 18% beneath Q3 2019’s pre-pandemic ranges.

• Bettering effectivity in decision: The variety of loans in lively foreclosures rose modestly year-over-year (18%), but general foreclosures quantity stays traditionally low, with Q3 foreclosures gross sales (21,000) at roughly half of 2019 ranges. FHA loans account for almost all of that rise, making up 38% of lively foreclosures, roughly half of the annual rise in foreclosures begins and 80% of the rise in lively foreclosures. The resumption of VA foreclosures exercise following final 12 months’s moratorium is essentially accountable for the rest.

• Prepayments are edging larger: Prepayments rose by 8 bps in September to a 0.74% single month mortality (SMM) fee, a 15% improve from the prior 12 months, as rates of interest started to ease in August.
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Here’s a desk from ICE.