Hurricanes! VA Serious Delinquencies Half That of FHA Serious Delinquencies (2% Versus 4%)

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

2017 hurricanes Harvey, Irma and Maria were among the 5 costliest hurricanes in history, according to USA Today.

As it stands, the serious delinquency rate on Veterans Administration (VA) loans is HALF of the serious delinquency rate on FHA-insured loans.

fhava.png

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.

hurricqans.png

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.

fhamip

 

 

 

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Leave a Reply