U.S. VA mortgages see rise in foreclosure activity post-moratorium

Published 23/05/2025, 14:08
U.S. VA mortgages see rise in foreclosure activity post-moratorium

Investing.com -- Intercontinental Exchange, Inc. (NYSE:ICE), a global technology and data provider, released its April 2025 First Look report today. The report indicates that U.S. Department of Veterans Affairs (VA) mortgages are moving through the foreclosure pipeline following the recent expiration of the foreclosure moratorium.

The ICE First Look report provides monthly data on delinquency, foreclosure, and prepayment statistics from its loan-level database, which includes a significant portion of the U.S. mortgage market. The national delinquency rate increased by 1 basis point to 3.22% in April and is slightly higher by 13 basis points (4.1%) year-over-year. However, the current delinquency rate is still below pre-pandemic levels.

Serious delinquencies, defined as loans 90 or more days overdue but not in foreclosure, saw a seasonal improvement but increased by 14% from April 2024. This is the sixth consecutive month of 10% or more annual increases. Foreclosure activity remained relatively low, but foreclosure starts, sales, and active inventory all increased on a yearly basis for the second consecutive month.

April 2025 saw 6,500 foreclosure sales, the highest single-month volume in 15 months. VA sales, which account for the majority of the recent increase, reached their highest level since 2019. Prepayment activity, measured in single month mortality, rose to 0.71%, driven by stronger home sale and refinance-related prepayments, which grew by 19.0% month-over-month and 34.9% year-over-year.

As of April 30, 2025, the total U.S. loan delinquency rate was 3.22%, with a month-over-month change of 0.28% and a year-over-year change of 4.10%. The total U.S. foreclosure pre-sale inventory rate stood at 0.38%, with a month-over-month change of -1.71% and a year-over-year change of 3.74%.

The report also provided a state-by-state breakdown of delinquency rates. The states with the highest percentage of non-current loans were Louisiana (7.60%), Mississippi (7.37%), Alabama (5.53%), Indiana (5.01%), and Arkansas (4.98%). Conversely, the states with the lowest percentage of non-current loans were Oregon (2.19%), Montana (2.08%), Idaho (2.02%), Colorado (2.00%), and Washington (1.94%).

The states with the highest percentage of loans 90 or more days delinquent were Mississippi (1.93%), Louisiana (1.93%), Alabama (1.49%), Florida (1.30%), and Georgia (1.30%). The report also noted the states with the largest 12-month changes in non-current loan percentage. New York had the largest decrease (-9.09%), while Florida had the largest increase (12.13%).

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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