Sep 30, 2020 | Dallas Morning News
Dallas-Fort Worth, Houston and San Antonio are among the U.S. cities that are seeing the biggest increases in late payments on federally backed home loans.
More than 17% of the Federal Housing Administration’s almost 8 million home loans nationwide were delinquent in August, according to a new study from the American Enterprise Institute.
“Rising FHA delinquency rates threaten homeowners and neighborhoods in numerous other metro areas across the country,” American Enterprise Institute researchers said in the just released report. "It would be expected that these delinquency percentages will increase over time.
“At some point, a significant percentage of the then delinquent loans would be expected to be placed on the market by owners under distressed conditions or become foreclosures, and then enter the market.”
In August, Houston had the second largest share of FHA loans that were late – more than 22%.
In the Dallas-Fort Worth area, more than 19% of homeowners with FHA loans were behind in their payments. And in San Antonio, 19% of FHA loans were late in August.
The increase in late FHA loan payments is even greater than the rise in the number of overall mortgage delinquencies since the start of the pandemic.
More than 8% of D-FW homeowners with a mortgage had missed at least one loan payment in the latest survey. A year earlier, only 3.5% of area homeowners were behind on mortgage payments, according to a new report by CoreLogic.
Many of the FHA borrowers have taken loan payment forbearance since the start of the pandemic.