WASHINGTON, D.C. – RealEstateRama — The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 4.44 percent of all loans outstanding at the end of the first quarter of 2026, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.
The delinquency rate was up 18 basis points from the fourth quarter of 2025 and up 40 basis points from one year ago. The percentage of loans on which foreclosure actions were started in the first quarter rose by 4 basis points to 0.24 percent.
“Mortgage delinquencies increased on an annual basis, with conventional loan delinquencies relatively flat but with notable increases among FHA and VA loans,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Last quarter, the delinquency rate for FHA loans was about 900 basis points higher than the conventional delinquency rate, and the VA delinquency rate was almost 225 basis points higher than the conventional delinquency rate. These are the widest spreads since 2021.”
Added Walsh, “We also saw movement of some delinquent FHA and VA loans into later stages of delinquency and into foreclosure. While the overall foreclosure rate remains well below historical averages, the first quarter’s foreclosure inventory rate for FHA loans reached its highest level since the fourth quarter of 2018, and the foreclosure rate for VA loans reached the highest level since the second quarter of 2017.”
Walsh noted that results have been affected by the expiration of pandemic-era FHA relief options at the end of September 2025 and by the implementation of required trial payment plans, during which FHA loans are still considered delinquent for survey purposes until a permanent workout is in place. Meanwhile, the industry also awaits the final guidance and implementation of the VA partial claim program to help veterans avoid foreclosure by covering missed payments.
Key findings of MBA’s First Quarter of 2026 National Delinquency Survey:
- Compared to last quarter, the seasonally adjusted mortgage delinquency rate increased for all loans outstanding. By stage, the 30-day delinquency rate increased 17 basis points to 2.24 percent, the 60-day delinquency rate decreased 14 basis points to 0.78 percent, and the 90-day delinquency bucket increased 15 basis points to 1.42 percent.
- By loan type, the total seasonally adjusted delinquency rate for conventional loans decreased 14 basis points to 2.75 percent over the previous quarter. The total FHA seasonally adjusted delinquency rate increased 36 basis points to 11.88 percent, and the total VA seasonally adjusted delinquency rate increased 39 basis points to 4.99 percent.
- On an annual basis, total mortgage delinquencies increased for all loans outstanding. The delinquency rate increased 5 basis points for conventional loans, increased 126 basis points for FHA loans and increased 36 basis points for VA loans from the previous year.
- The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the first quarter was 0.64 percent, up 11 basis points from the fourth quarter of 2025, and 15 basis points higher than one year ago.
- The non-seasonally adjusted seriously delinquent rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 2.03 percent. It increased 18 basis points from last quarter and increased 40 basis points from last year. The seriously delinquent rate decreased 4 basis points for conventional loans, increased 94 basis points for FHA loans, and increased 3 basis points for VA loans from the previous quarter. Compared to a year ago, the seriously delinquent rate decreased 1 basis point for conventional loans, increased 212 basis points for FHA loans, and increased 10 basis points for VA loans.
- The five states with the largest annual increases in their overall delinquency rate were: Mississippi (131 basis points), Louisiana (88 basis points), Maryland (84 basis points), Georgia (78 basis points), and Alabama (73 basis points).
NOTE: For non-seasonally-adjusted (NSA) supplemental information on the performance of servicing portfolios by investor type, loans in forbearance by investor type, and the status of post-forbearance workouts, as well as servicer call volume metrics, please refer to MBA’s Monthly Loan Monitoring Survey at www.mba.org/lms.