End Of FHA Relief Programs Contributes To Uptick In Q4 Delinquencies

Mortgage delinquencies in the U.S. increased during the fourth quarter of 2025, according to the latest Mortgage Bankers Association’s National Delinquency Survey.

The overall delinquency rate for mortgage loans on one-to-four-unit residential properties rose to 4.26% of all loans outstanding at year’s end, up 27 basis points from the third quarter, and 28 basis points year-over-year.

The uptick in delinquencies spanned all major loan types — conventional, FHA, and VA mortgages — with FHA loans experiencing the most pronounced deterioration, with the delinquency rate climbing to 11.52%, the highest level since the second quarter of 2021.

Later-stage delinquencies (90+ days past due) for FHA loans surged by 76 basis points, and the FHA foreclosure inventory rate rose to its highest level since the first quarter of 2020.

Conventional loan delinquencies increased to 2.89%, while VA loan delinquencies edged up to 4.60%. Although foreclosure starts remained unchanged at 0.20%, the share of loans in the foreclosure process climbed to 0.53%, marking an eight-basis-point increase from a year ago.

MBA analysts cited the expiration of pandemic-era FHA relief measures and uneven labor market conditions as contributing factors to the delinquency rise. 

“The fourth quarter results may have been impacted by the expiration of pandemic-era FHA relief options as well as disparities in the labor market 一 a key determinant of mortgage delinquency levels,” said Marina Walsh, CMB, MBA’s vice president of industry analysis.

Serious delinquencies — loans 90 days or more past due or in foreclosure — increased across most segments, especially for government-backed loans.

Geographically, states including Mississippi, Louisiana, Maryland, Oklahoma, and Indiana logged the largest quarterly increases in delinquency rates.