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CFPB Launches New Mortgage Performance Trends Tool for Tracking Delinquency Rates
Tuesday, October 31, 2017 6:35 AM

Newly Available Data Shows Lowest Mortgage Delinquency Rate since Financial Crisis

The Consumer Financial Protection Bureau on Monday announced the launch of its new Mortgage Performance Trends tool that tracks delinquency rates nationwide. Information newly available through this tool shows that mortgage delinquency rates nationally are at their lowest point since the financial crisis. In addition to national data, the online tool features interactive charts and graphs with data on mortgage delinquency rates for 50 states and the District of Columbia at the county and metro-area level.

With a combined value of roughly $10 trillion, mortgages make up the nation’s largest consumer credit market. The Mortgage Performance Trends tool measures the delinquency rates in two general categories. The first is comprised of borrowers who are 30 to 89 days behind on their mortgage payments, which generally means they have missed one or two payments. Tracking this rate can detect trends in the increase or decrease in the number of delinquencies, and act as an early warning sign for mortgage market developments that impact the overall economy. The second category is serious delinquencies, which is made up of borrowers who are more than 90 days overdue. If high, this rate reflects more severe economic distress.

The interactive charts and maps in the tool track monthly changes in both categories of delinquency rates starting in 2008, when the financial crisis was unfolding. Leading up to the crisis, some lenders originated mortgages to consumers without considering their ability to repay the loans.

CFPB says the decline in underwriting standards led to skyrocketing rates of mortgage delinquencies and foreclosures. Mortgage delinquency data reflected in the Mortgage Performance Trends tool shows that among other things:

  • Rates of serious delinquency are at the lowest level since the financial crisis: According to the data, the national rate of seriously delinquent mortgages peaked at 4.9 percent in 2010. As of March 2017, the rate had fallen to 1.1 percent, the lowest level since 2008. Colorado and Alaska have the fewest serious delinquencies, with 0.5 percent. New Jersey and Mississippi have the highest rates of delinquencies of more than 90 days, with 2.1 percent. For mortgages that are delinquent by less than 90 days, Mississippi has the highest rate, at 4.3 percent. Washington State has the lowest rate, at 1 percent.
  • Most states hardest hit by the housing crisis have steadily recovered: At the peak of the financial crisis, California and Arizona had rates of serious delinquencies of 7.5 percent and 7.6 percent, respectively, and are now below 1 percent.  Nevada, which peaked at 10.7 percent, now has a serious delinquency rate of 1.2 percent, nearly the same as the national average. Florida, which peaked at 9.0 percent, now has a rate of 1.4 percent.

Information in the Mortgage Performance Trends tool comes from the National Mortgage Database. The CFPB and the Federal Housing Finance Agency launched the National Mortgage Database in 2012 to be a comprehensive repository of mortgage information. The database supports policymaking and research, and helps regulators better understand emerging mortgage and housing market trends. The National Mortgage Database includes information spanning the life of a mortgage loan from origination through servicing and captures a variety of borrower characteristics. It is a nationally representative sample of all outstanding, closed-end, first-lien mortgages for one-to-four family residences.

The Mortgage Performance Trends tool has many protections in place to protect personal identity. Before the CFPB or the FHFA receive data for the National Mortgage Database, all records are stripped of information that might reveal a consumer’s identity, such as names, addresses, and Social Security numbers.

View the new Mortgage Performance Trends tool.