Mortgage delinquencies climbing in several states

WalletHub said on May 21 that mortgage delinquencies increased in several U.S. states from the fourth quarter of 2025 to the first quarter of 2026, with Vermont, Delaware and Louisiana recording the biggest jumps. Fox 5 New York, citing the WalletHub analysis, said late mortgage payments can remain on credit reports for up to seven years and weigh on borrowers’ scores. (fox5ny.com) The Mortgage Bankers Association said separately that the national delinquency rate for one-to-four-unit residential mortgages rose to 4.44% in the first quarter of 2026, up 18 basis points from the prior quarter. (newslink.mba.org) The New York Fed said in February that mortgage delinquency rates had been rising for several years, even while remaining low by longer-run standards. ### Which states are seeing the fastest increases? (consumerfinance.gov) Vermont ranked first in WalletHub’s latest state comparison, with the number of delinquent mortgages rising by more than 12% between Q4 2025 and Q1 2026. Fox 5 New York said Vermont’s overall delinquency rate was still roughly 6%, among the lowest in the country despite the increase. Delaware ranked second, with delinquencies rising nearly 7% over the same period, while Louisiana ranked third. A separate local report on Louisiana said about 14.33% of mortgage accounts in the state were delinquent in the first quarter, up 4.40% from the prior quarter. KBHB, citing the WalletHub release, listed Florida, Montana, Connecticut, New Hampshire, Colorado, Texas and Idaho behind the top three. WalletHub said it compared proprietary consumer data across all 50 states to identify where borrowers were falling behind fastest and where they were staying current. (fox5ny.com) ### How does that compare with the national picture? The Mortgage Bankers Association said on May 15 that the seasonally adjusted national delinquency rate rose to 4.44% of all loans outstanding at the end of the first quarter. MBA said that was up 40 basis points from a year earlier. The share of loans entering foreclosure also rose by 4 basis points to 0.24%, according to the survey. (fox5ny.com) Marina Walsh, MBA’s vice president of industry analysis, said conventional loan delinquencies were relatively flat, but FHA and VA loans posted “notable increases.” MBA said the FHA delinquency rate increased 36 basis points from the prior quarter to 11.88%, while the VA delinquency rate rose 39 basis points to 4.99%. (kbhbradio.com) ### What is driving the increase, according to the data sources? The Federal Reserve Bank of New York said on Feb. 10 that mortgage delinquencies had been “steadily increasing over the past few years.” The New York Fed said the deterioration was most pronounced in lower-income ZIP codes, where new 90-day-plus delinquency rates had climbed from about 0.5% in 2021 to nearly 3.0% by late 2025. (newslink.mba.org) It said areas with weaker labor markets and softer housing conditions were seeing more stress. Fox 5 New York said WalletHub’s analysis pointed to state-level economic conditions as possible contributors. In Vermont, the station said moderate economic performance and a relatively high tax burden may be factors behind the rise in missed payments. (newslink.mba.org) ### When does a missed payment become a reported delinquency? Chip Lupo, a WalletHub analyst, said borrowers typically have until a mortgage debt is 30 days past due to get current before lenders report the delinquency to credit bureaus. Lupo said borrowers facing temporary hardship should ask lenders about forbearance, which may help avoid being reported delinquent. Fox 5 New York said missed payments can stay on a credit report for as long as seven years. (libertystreeteconomics.newyorkfed.org) ### Where can readers track what happens next? The Consumer Financial Protection Bureau said its mortgage performance map shows 30-to-89-day delinquency rates for the nation, states, metro areas and counties, but the public data currently runs only through September 2025. MBA said its National Delinquency Survey provides quarterly updates on one-to-four-unit residential mortgages, and WalletHub’s latest comparison covers the first quarter of 2026. (fox5ny.com) (consumerfinance.gov)