Distressed

For the fourth month in a row, overall mortgage delinquency rates have increased, with loans 30 days or more late up 0.2 percentage points in September.

The Federal Housing Administration is giving servicers more leeway to automate borrower contact but it's also requiring them to reach further afield.

Delinquent borrowers in areas hit by Hurricanes Helene and Milton will get a few additional months to find solutions before servicers can resume legal actions.

Serious mortgage delinquencies are at their highest since May 2023, and early payment default activity is also a concern, ICE Mortgage Technology said.

Government-guaranteed securitization rules complicate servicing sales and are a growing problem for nonbanks, the Community Home Lenders of America says.

Foreclosures were up month to month in October, while future indicators, such as mortgage delinquencies and trouble making all debt payments, came in higher as well.

Private mortgage insurers are having a strong year so far, although most had flat business in the third quarter, industry results show.

Even as home equity withdrawals hit a two-year high, utilization rate remained less than half of normal, ICE Mortgage Technology said.

The number of vacant, abandoned properties in foreclosure, while up from the third quarter, was nearly 1,800 lower than a year ago, Attom Data said.

If customers perceive they are dealing with a scripted chatbot, they are likely to be less satisfied with their mortgage servicer, J.D. Power said.