"About 878,000 loans are now either 90-plus day past due or in foreclosure, marking the highest level since mid-2018 outside of pandemic-era disruptions. This represents a 25% increase, or roughly 175,000 loans, over the past four months."
"Federal Housing Administration (FHA) mortgages account for more than 80% of the recent rise in serious delinquencies, with seriously delinquent FHA loan volumes up more than 40% over that period."
"Cure rates have fallen more than 40% since the third quarter of 2025, and roughly 70% among the FHA loan population, indicating a significant decline in the share of delinquent borrowers returning to current status."
"The share of seriously delinquent loans in forbearance rose late last year and has begun to ease as borrowers reach the end of their initial three-month plans, which will be a key indicator of default risk through 2026."
The number of borrowers with a single payment past due rose by 43,000, while loans at least 90 days past due increased by 17,000. Serious distress is climbing, with 878,000 loans either 90-plus days past due or in foreclosure, a 25% increase over four months. FHA mortgages account for over 80% of this rise. Cure rates have fallen significantly, indicating a return to pre-pandemic norms. Foreclosure activity is rising annually, and forbearance trends may impact future default risks as borrowers exit their plans.
Read at www.housingwire.com
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