Serious Delinquency Rates Are Down, But is Lending Now Too Restrictive?

Serious Delinquency Rates Are Down, But is Lending Now Too Restrictive?


Even though the housing market has made many strides forward, is there still a fair amount of serious delinquency (SDQ) among today’s active mortgages? The short answer is no, but it all depends on the origination year of each mortgage, with some years being better than others in terms of their SDQ rates. Core Logic has posted some graphs that demonstrate the amount of SDQ that was happening during the 2000’s as compared to the last few years; spoilers: the SDQ rate is no where near what it was around the time of the recession.


The vintage mortgages originating from 2005-2008 had the highest rates of SDQ in the last 15 years. This was at a time when lending restrictions were at their most relaxed in an attempt to qualify as many people (including high-risk individuals with bad credit and/or a low income) as possible for home loans so lenders could make money off the interest. Unfortunately, it was also a prominent example of good intentions gone bad for government-run lenders such as Fannie Mae and Freddie Mac by lending to too many people who by today’s standards might not qualify for a home loan, and ultimately defaulting on those loans. 2006 marked the worst year for SDQ, having an 18% SDQ rate after only few years into the mortgages given.

Heavier lending restrictions were put in place shortly after the housing bubble burst, and noticeably SDQ rates dropped considerably for loans originating after 2009, most not breaking a SDQ rate of 2%. Better economic and housing market conditions during the recovery years can also be attributed to lowering delinquency rates as well. Here are some fun facts for you to digest:

  • There are over 1.6 million SDQ mortgages in the United States and account for 4.2% of all total active mortgages today
  • As of September 2014, mortgages originating between 2004-2008 accounted for about 77% of all SDQ mortgages and 25% of all active mortgages
  • If you remove the 2004-2008 SDQ mortgages from the current total of SDQ mortgages active today, the rate is only 2.1%
  • Mortgages originating from 2009-2014 currently make up 62% of all active mortgages and only account for 15% of all SDQs

Do you have an experience with having a home loan during the 2000s? Tell us your story on our Facebook page!

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Jonathan is a CSULB graduate with expertise in wielding the art of the written word. He has been writing professionally for many years in copywriting, content editing, branding, and journalism. Everyone has a story to tell, and Jonathan is able to bring it to life.