on Estimated risk per 23.11.2022 18:12:00
Freddie Mac informed that the rate of severe delinquency per household was 0.66% in October compared to 0.67% in September. Freddie’s rate is down year-over-year from 1.32% in October 2021.
Freddie’s severe NPL peaked in February 2010 at 4.20% after the housing bubble and peaked at 3.17% in August 2020 during the pandemic.
These are mortgages that are “past due or collectible on three or more monthly payments.”
Overdue mortgages are counted as past due on this monthly report but are not reported to credit bureaus.
The severe delinquency rate shortly before the pandemic was 0.60%, almost to that level.
Note that multi-family arrears are on the rise and were 0.15% in October.