FHA delinquencies’ ‘No Contact’ rate has surged to 17.77% vs. 7-8% during 2008.

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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