Distressed

Total consumer debt in the United States hit $18.2 trillion by the end of last year, with $12.8 trillion attributed to first mortgages, according to Equifax.

Borrowers in the lowest-income areas have seen their 90 or more day delinquency rates soar since 2021, jumping from 0.5% to nearly 3%, the New York Fed said.

Less than 45% of mortgage residential properties in the United States were equity-rich last quarter, a 1.5-percentage-point drop from the third quarter.

Our experts expect a mortgage market reset in 2026 with an uptick in originations, but warn lenders not to skimp on compliance even as the reins loosen.

The prepayment rate grew by 37% over September as mortgage rates fell leading to higher refinancing volume in October, ICE Mortgage Technology said.

Delinquencies are at their second highest level in three years, led by deterioration in the performance of FHA loans, the Mortgage Bankers Association said.

While Fitch and Kroll have differing views on mortgage rates next year, both are looking for mortgage delinquencies to rise in their rated portfolios.

Retroactive interpretations have bedeviled mortgage servicers and the market for older loans. The industry will be watching other cases in New York closely now.

The latest reports from ICE Mortgage Technology and VantageScore appear to be in line with hints at growing borrower pressure officials are eyeing in policy.

While the overall delinquency rate improved this summer, FHA-backed mortgage borrowers continued to exhibit concerning levels of payment stress in July.

While foreclosure numbers in the first six months of this year were up compared to 2024, starts eased as the spring progressed, according to Attom.

Calls for foreclosure prevention advice jumped upward by almost 30% from a year ago and helped fuel overall consumer distress levels to a five-year high.

While consumer distress in auto and personal loans also picked up, the pace of growth among mortgages was atypical, Vantagescore's monthly credit gauge said.

Loans with alternative documentation and high combined loan-to-value ratios had more performance concerns, according to a new KBRA study.

The latest foreclosure report adds to evidence from housing research groups that economic difficulties are beginning to impact a rising number of homeowners.

The Department of Veterans Affairs ended a break for borrowers put at a disadvantage by a discontinuation of pandemic aid as they transitioned to a new program.

Completed foreclosure auctions should be 8% lower this year, but if home value and unemployment expectations change, all bets are off, Auction.com said.

Only 5% of homeowners in designated disaster-assistance areas were required to hold flood insurance, according to the Federal Housing Finance Agency's dashboard.

The Treasury, CFPB and Federal Trade Commission are joining forces to warn consumers about predatory practices in financing solar energy panels.

Forbearance rose for the first time since October 2022 in one report. Delinquencies jumped from a near-record low in another. Experts debate the ramifications.