Distressed

While overall performance looks solid, the data shows the weight of economic concerns may be weighing on some borrowers, the Mortgage Bankers Association said.

New insurance written at the six private mortgage insurers increased by only 2% year-over-year, a sign of the sluggish home sales market at the low end.

GSE loans acquired in the period have higher loan-to-value and debt-to-income ratios and lower credit scores, which Milliman said boosted serious default risk.

While rising national home values leave close to half of owners on solid financial footing, growth in seriously underwater loans points to pockets of stress.

While foreclosure numbers in the first six months of this year were up compared to 2024, starts eased as the spring progressed, according to Attom.

Calls for foreclosure prevention advice jumped upward by almost 30% from a year ago and helped fuel overall consumer distress levels to a five-year high.

While still remaining relatively bullish on the sector because of its strong performance year-to-date, all five companies' stock outlook is at "market perform."

As the housing market cools, a rise in delinquency rates and underwater mortgages could be a foreboding sign for the future.

Foreclosure prevention at the government-sponsored enterprises and Federal Housing Administration is less expensive than the alternative, two studies show.

While consumer distress in auto and personal loans also picked up, the pace of growth among mortgages was atypical, Vantagescore's monthly credit gauge said.