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WBK Industry News - Federal Regulatory Developments

CFPB Launches New Mortgage Performance Trends Tool for Tracking Delinquency Rates

The CFPB launched a new Mortgage Performance Trends tool that tracks delinquency rates in two general categories.  The first category includes borrowers who are 30 to 89 days delinquent which means that they are most likely two payments behind.  According to the CFPB, tracking this category is intended to provide an early warning sign for mortgage market developments impacting the overall economy.  The other category tracks mortgage delinquencies that are more than 90 days overdue and a higher rate in this category may reflect more severe economic danger.

The tool uses interactive maps and charts that track monthly changes in both delinquency rate categories beginning in 2008.  The data used in the Mortgage Performance Trends tool is derived from the National Mortgage Database developed by the CFPB and FHFA, that was launched in 2012.  The CFPB indicated that the data is a “…nationally representative sample of all outstanding, closed-end, first-lien mortgages for one-to-four family residences.”

The CFPB indicates the data reveals that serious delinquency is at the lowest level since 2010 falling from 4.9 percent to 1.1 percent as of March 2017.  Additionally, the data indicated that the hardest hit states during the housing crisis have steadily recovered.