jbancroft@imfpubs.com

Delinquency rates on FHA and VA loans in Ginnie Mae mortgage-backed securities rocketed higher during the second quarter of 2020 as the coronavirus ravaged the U.S. economy.

At the end of June, a whopping 14.07% of FHA loans in Ginnie pools were delinquent, up from 7.57% in March, according to an Inside FHA/VA Lending analysis of MBS disclosures. The total delinquency rate for VA loans leaped from 3.85% to 7.17% over the same period.

A total of 1.38 million borrowers with loans in Ginnie MBS were in default at the end of June. As bad as that sounds, the data indicate that the situation began to improve the past two months.

As stay-at-home orders took effect this spring, share of FHA/VA loans one-month past due jumped from 3.99% in March to 7.13% in April. For full details and exclusive tables, see the new edition of Inside FHA/VA Lending, now available online.