As it stands, the serious delinquency rate on Veterans Administration (VA) loans is HALF of the serious delinquency rate on FHA-insured loans.
Federal Housing Administration-insured mortgages had a 146-basis-point increase in their delinquency rate from the second quarter, to 9.4%. This was the largest quarter-to-quarter increase in the MBA survey’s history.
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There was a 52-basis-point increase in Veterans Affairs mortgage delinquencies to 4.24%, while the conventional loan delinquency rate rose 50 basis points to 3.97%.
While the storms played a critical factor in explaining the rise in the overall delinquency rate, there are other factors to consider, especially given delinquency rate increases in other states not directly impacted by the storms.
First, there were timing issues associated with the last day of the month being a Saturday. Processing for mortgage payments made over the weekend did not occur until Monday, Oct. 2 and thus these mortgage payments were identified as 30-days delinquent per NDS definitions.
Plus, delinquency rates were at historic lows in the second quarter. The FHA delinquency rate was at its lowest point in 21 years, while for the VA, late payments were at a level not seen since 1979.
And if you have FHA insurance, you are a Jet all the way! Particularly if you applied for an FHA loans on or after June 3, 2013.
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