According to the latest ICE Mortgage Monitor, the national delinquency rate ticked down 2 basis points (bps) to 3.20% in May, though it is up 5.2% (16 bps) year over year. Serious delinquencies (loans 90+ days past due but not in foreclosure) improved seasonally for the 5th consecutive month but are still up 56k (14%) from the same time last year. However, the 3rd consecutive month, foreclosure starts, active foreclosure and foreclosure sales rose on an annual basis as VA foreclosure resumptions continue to make their way through the pipeline.
In addition, the U.S. Department of Education resumed collections efforts on defaulted student loans in May following a five-year pause with student loan debt in the coming months for any emerging signs for stress. ICE says 20% of mortgage holders in the U.S. carry student loan debt, with that share rising to nearly 30% among FHA mortgage holders.
The resumption of student loan collections, with the potential for wage garnishment, warrants closer oversight of mortgage performance among borrowers with student loans for signs of financial stress.
Click here to read the full report at ICE Mortgage Technology (formerly Black Knight).
