A whopping 17.77% of FHA delinquencies aren't paying because they've vanished into thin air?
Not only the 3rd highest share after Reduction of Income & Excessive Obligations, which have normalized to Q4 '19 levels, No Contact is 2.4x pre-pandemic!
Are homeowners being abducted? https://t.co/RTvozlfLwO
— Danielle DiMartino Booth (@DiMartinoBooth) September 24, 2024
The current situation with FHA delinquencies is indeed concerning. As of the latest data, 17.77% of FHA delinquencies are categorized under “No Contact,” meaning the borrowers have essentially vanished. This is the third highest reason for delinquencies, following “Reduction of Income” and “Excessive Obligations,” which have returned to pre-pandemic levels.
During the housing crisis of 2008-2009, the “No Contact” category for FHA delinquencies was significantly lower than it is today. At that time, the percentage of delinquencies categorized as “No Contact” was around 7-8%. This is much lower compared to the current rate of 17.77%.
Sources:
https://www.hud.gov/program_offices/housing/hsgrroom/loanperformance
https://www.federalreservehistory.org/essays/subprime-mortgage-crisis
A mortgage is a 30 year commitment
Act accordingly.
The pandemic unwind will last the rest of this decade pic.twitter.com/jj6aA89Qw4
— Amy Nixon (@texasrunnerDFW) September 24, 2024
WARNING: Buying conditions have collapsed
Now reaching levels only seen 2 times since 1960:
– 1974
– 1981Both ended in a recession pic.twitter.com/hY8TPZ6oO2
— Game of Trades (@GameofTrades_) September 23, 2024
3/ During the same time, personal interest payments have nearly 2x
It has now crossed $500 billion pic.twitter.com/jDdRttmsFW
— Game of Trades (@GameofTrades_) September 24, 2024