ATL FHA Delinquencies

[Jon Baker]

Atlanta has the highest number of delinquent FHA loans in the COUNTRY, close to the highest % as well and significantly higher % than the country. Plus- delinquent FHA loans maxed out around 15% during the great recession and we are at 17.6% as of August 2020. Would this not indicate a bubble in Atlanta? I won't pretend to be an expert but this information is not irrelevant, yeah?

[Matthew Nicklin]

Yep WolfStreet had a great article talking about this months ago. Atlanta has the most delinquent FHA loans by number of loans but not overall percentage. This does include people that are currently in a forbearance plan. The original data is from the Black Knight Mortgage monitor report. If you are interested in tracking this you should check out the monthly Black Knight Mortgage monitor report(As of writing this December 2020 is the latest report out, January 2021 has not posted yet).

If you look at the December 2020 report the national delinquency rate has dropped and is trending down. It will be interesting to see how this plays out long term. With the Biden Administration talking about extending the eviction/foreclosure moratorium to September 2021 things could get interesting. This eviction/foreclosure moratorium has put a ton of pressure on supply, we have a huge inventory shortage in Atlanta right now.  

The current report has a great chart showing current # of mortgages in forbearance plan by mortgage type.

As you can see overall FHA/VA buyers have the most in forbearance plans. Most of these forbearance plans expire Q2 or Q3 of 2021 so we will see how this shakes out.