Amid widespread job losses and other economic hardship resulting from the COVID-19 pandemic, all the U.S. states, Puerto Rico, and the District of Columbia experienced quarterly percentage increases in home loans past due, according to the seasonally adjusted Q2 2020 results of the Mortgage Bankers Association’s (MBA) Q2 2020 National Delinquency Survey.
In the second quarter of this year, on a year-over-year basis, Puerto Rico, New York, and New Jersey experienced the greatest increases in the “seriously delinquent” rate (SDR), i.e., the non-seasonally adjusted percentage of loans that are 90+ days past due or in the process of foreclosure. These areas also had the highest SDR’s for Q2 2020: Puerto Rico at 18.1%, New York at 7.4%, and New Jersey at 6.8%. Louisiana and Connecticut, two other states which were severely hit by COVID-19, rounded out the top 5 states with the highest SDR’s. Not only did all of the 50 states, the District of Columbia, and Puerto Rico experience an overall increase in the SDR from the previous quarter, but also the SDR’s across all three of their constituent loan types (Conventional, FHA-backed, and VA-backed) increased, too.
The changes for loans serviced were mixed for the second quarter, with 15 states and Puerto Rico reporting declines in total loans serviced, the greatest decline not exceeding 11%, and the other 35 states and the District of Columbia reporting increases, with the greatest increase not exceeding 5.5%. Interestingly, Wyoming, West Virginia, and Kentucky were among the top 5 states that experienced the greatest quarterly decline in loans serviced as well as the number of loans 30-59 days past due in percentage terms.