FHA Mortgage Delinquencies Reach a Record, Led by New Jersey
- State also had biggest increase in overall late-payment rate
- Forbearance protecting many borrowers from foreclosure for now
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Federal Housing Administration mortgages -- the affordable path to homeownership for many first-time buyers, minorities and low-income Americans -- now have the highest delinquency rate in at least four decades.
The share of late FHA loans rose to almost 16% in the second quarter, up from about 9.7% in the previous three months and the highest level in records dating back to 1979, the Mortgage Bankers Association said Monday. The delinquency rate for conventional loans, by comparison, was 6.7%.