Distressed Mortgages

The number of homes with default notices, scheduled auctions or bank repossessions last month was down from January but up 20% from a year ago.

While overall delinquencies eased in January, foreclosure starts jumped to their highest point since early 2020, signaling growing strain among late-stage borrowers despite steady mortgage performance.

Total consumer debt in the United States hit $18.2 trillion by the end of last year, with $12.8 trillion attributed to first mortgages, according to Equifax.

For five of the six private mortgage insurers, the surge of originations during the fourth quarter led to more new business versus the prior three months.

About 1.3% of residential properties in the United States were vacant at the beginning of the year, Attom found.

TransUnion projected moderate growth in 2026 for mortgages, projecting purchases and refinances to increase 4% and 4.2% year over year.

Mortgage delinquencies increased across loan types, and while 30-day late payments showed overall improvement, later-stage distress worsened.

Borrowers in the lowest-income areas have seen their 90 or more day delinquency rates soar since 2021, jumping from 0.5% to nearly 3%, the New York Fed said.

Rising defaults, fraud risks, and collapsing rents are converging in urban multifamily, threatening lenders and taxpayers, according to the Chairman of Whalen Global Advisors.