Freddie Mac Mortgage Serious Delinquency Rate unchanged in January; Fannie Mae Decreased Slightly - InvestingChannel

Freddie Mac Mortgage Serious Delinquency Rate unchanged in January; Fannie Mae Decreased Slightly

Freddie Mac reported that the Single-Family serious delinquency rate in January was 0.66%, unchanged from 0.66% December. Freddie’s rate is down year-over-year from 1.06% in January 2022.

Freddie’s serious delinquency rate peaked in February 2010 at 4.20% following the housing bubble and peaked at 3.17% in August 2020 during the pandemic.

Fannie Mae reported that the Single-Family Serious Delinquency decreased to 0.64% in January from 0.65% in December. The serious delinquency rate is down from 1.17% in January 2022.  This is at the pre-pandemic lows.

The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59% following the housing bubble and peaked at 3.32% in August 2020 during the pandemic.

These are mortgage loans that are “three monthly payments or more past due or in foreclosure”.

Fannie Freddie Seriously Delinquent RateClick on graph for larger image

Mortgages in forbearance are being counted as delinquent in this monthly report but are not reported to the credit bureaus.

For Freddie, note that multi-family delinquencies have been increased slightly and were at 0.12% in January, up from 0.07% in January 2022.

For Fannie, by vintage, for loans made in 2004 or earlier (1% of portfolio), 2.11% are seriously delinquent (down from 2.16% in December). 

For loans made in 2005 through 2008 (1% of portfolio), 3.40% are seriously delinquent (down from 3.49%).
 For recent loans, originated in 2009 through 2021 (98% of portfolio), 0.52% are seriously delinquent (down from 0.53%). So, Fannie is still working through a handful of poor performing loans from the bubble years.

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