What it means
A missed payment is not the same as a long-running problem, so lenders and researchers separate early and serious delinquency. The Consumer Financial Protection Bureau says its 30 to 89 day rate generally captures borrowers who missed one or two payments.
It describes its 90-day rate as a measure of serious delinquencies, generally capturing borrowers who have missed three or more payments and measuring more severe economic distress. In its data notes, the CFPB rate counts records where the consumer is 90 or more days past due but not in foreclosure.
Fannie Mae uses a related but different definition: its monthly summary says single-family seriously delinquent loans are loans that are 90 days or more past due or in the foreclosure process, while multifamily seriously delinquent loans are 60 days or more past due. The difference matters when comparing numbers, because a rate that excludes foreclosure cases can look lower than one that includes them, and a multifamily threshold of 60 days is earlier than a single-family threshold of 90.
Both sources describe it as a rate, where the numerator is the number of seriously delinquent loans and the denominator is the total outstanding loans in the measured group. The group may be a national sample, a state, an investor book or a servicer portfolio.
The CFPB's mortgage charts are based on a 5% sample of residential mortgages since January 2008, so they describe a sample, not every loan, and previously published rates may change between updates because credit data are updated. The CFPB also says delinquency rates may look lower than expected during public emergencies if missed payments are reported as current, so a reader should check the data notes.
Any published figure is dated and applies to its publisher's definition and book, so a Fannie Mae figure, for example, is not a national mortgage rate. Because one month can be noisy, analysts often watch the trend over several months, with a rising rate suggesting growing stress and a flat or falling rate suggesting stability, subject to the data notes.
For a borrower, being this far behind can lead to more serious consequences. The exact steps depend on the loan terms, the servicer and local law.
A borrower should contact the servicer early and ask about available options. The label can mislead.
Serious delinquency is not the same as foreclosure, and it is not one universal threshold.
In practice
Real-world examples.
Example
A fictional servicer has 10,000 mortgages. Of these, 120 are 90 or more days past due and not in foreclosure. Using a CFPB-style definition, the rate is 1.2%, which the servicer reports alongside the number of loans in the sample.
Example
The same fictional servicer also has 60 loans in the foreclosure process. Using a Fannie Mae-style single-family definition, the 180 loans give a rate of 1.8%. The two rates differ because of what is counted, not because borrower behaviour changed.
Example
A fictional investor reviews an apartment loan 60 days past due. Under the Fannie Mae multifamily definition, it is seriously delinquent. A single-family loan with the same delay would not yet meet the 90-day threshold, so the investor compares like with like before judging the portfolio.
Formula
Calculation
Serious delinquency rate = seriously delinquent loans / total loans x 100. For 10,000 loans with 120 loans 90 or more days past due and 60 in foreclosure, the broader rate is (120 + 60) / 10,000 = 1.8%. Excluding foreclosure cases gives 120 / 10,000 = 1.2%.
Trend check with the same fictional book. If three months earlier 90 loans were 90 or more days past due and not in foreclosure, the rate was 90 / 10,000 = 0.9%. The move to 1.2% is a rise of 0.3 percentage points, or (120 - 90) / 90 = 33% more loans, and both ways of describing the change should be stated clearly.
Multifamily check. If 4 of 200 apartment loans are 60 or more days past due, the multifamily-style rate is 4 / 200 = 2.0%, even though none of those loans would yet count under a 90-day single-family threshold.
These are fictional figures to show how definitions change the result. They are not market data.Case study
Seen in the real world.
This case study is fictional and illustrative. A credit analyst compares two reports on mortgage stress. One uses a 90-day rate that excludes foreclosure, and the other includes loans in foreclosure. The analyst checks the data notes before comparing the numbers.
She finds the two reports use different definitions and different loan groups. She rebuilds a table with each definition shown beside its source. She also notes the date of each figure and that revisions can occur. Her note advises readers not to compare the rates directly.
It also suggests asking each publisher how it treats foreclosure and emergency-related reporting. The analyst closes with a practical rule for her team. In this illustrative story, every chart of delinquency must name the threshold, the treatment of foreclosure, the loan group and the date, and any chart missing one of them goes back for correction. The rule takes a minute to apply and prevents a misleading comparison from reaching a client.
Watch out
Common mistakes.
- Comparing rates from sources that define serious delinquency differently.
- Assuming serious delinquency means foreclosure has started.
- Using a dated rate as a current national figure.
Questions
People also ask.
What is the usual mortgage threshold?
The CFPB and Fannie Mae single-family definitions both use 90 or more days past due, but they treat foreclosure differently.
Is multifamily the same?
No. Fannie Mae's multifamily definition uses 60 or more days past due.
Can published rates change?
Yes. The CFPB says previously published rates may change between updates.
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