By the Numbers

FHA delinquencies resume their ascent

| July 31, 2026

This material is a Marketing Communication and does not constitute Independent Investment Research.

FHA delinquencies rose again in June. The share of 2025 loans at least 60 days delinquent reached 6% for FHA borrowers and 5% for rural housing borrowers, showing how quickly they can fall behind. Non-QM borrowers also tend to have weaker credit, but their delinquency rates were little changed, with less than 1% of 2025 loans delinquent. Conventional and prime jumbo delinquencies remain low, though nearly 2% of 2023 prime jumbo loans are at least 60 days past due.

  • FHA delinquencies climbed for the second straight month
  • Non-QM DQs were roughly flat in the 2021–2024 vintages
  • 2023 vintage prime jumbo approaching 2% delinquent

GOVERNMENT LOANS

FHA DQs continued to increase in June. The worst-performing vintage, 2022, remained above 12% delinquent.

Exhibit 1: FHA %D60+ ($1.6T outstanding)

Note: Deadline for restarting student loan payments without being considered delinquent, suspended since Covid, arrived Oct 1, 2024. As of July 2026 factors.
Source: Ginnie Mae, Santander US Capital Markets

Rural housing DQs also increased in June. The 2024 vintage is slightly above its prior peak at the start of the year.

Exhibit 2: Rural Housing %D60+ ($98B outstanding)

Note: Rural housing borrowers must have income below 115% of area median income. As of July 2026 factors.
Source: Ginnie Mae, Santander US Capital Markets

VA DQs held steady in June across all but the 2025 vintage.

Exhibit 3: VA %D60+ ($1.1T outstanding)

Note: VA borrowers typically have stronger credit performance than FHA borrowers; these loans typically offer lower interest rates than conventional loans, which attracts borrowers that could qualify for a conventional loan. As of July 2026 factors.
Source: Ginnie Mae, Santander US Capital Markets

FANNIE MAE, FREDDIE MAC

Conventional delinquencies remain stable and well below government loans, reflecting higher credit scores and larger down payments

Exhibit 4. Conventional %D60+ ($6.4T outstanding)

As of July 2026 factors.
Source: Fannie Mae, Freddie Mac, Santander US Capital Markets

PRIVATE MBS

Non-QM delinquencies were steady in May.

Exhibit 5: non-QM %D60+ ($143B outstanding)

Note: Non-QM (Qualified Mortgage) borrowers typically do not qualify for agency underwriting. For example, a borrower might qualify using bank statements to document assets but not traditional income documentation like tax returns or paystubs. As of June 2026 remits.
Source: Cotality, Santander US Capital Markets

Prime jumbo DQs stayed low, but the 2023 vintage is approaching 2% delinquent. That is about double the level of 2023 Fannie and Freddie.

Exhibit 6: Prime Jumbo %D60+ ($124B outstanding)

As of June 2026 remits.
Source: Cotality, Santander US Capital Markets

Brian Landy, CFA
brian.landy@santander.us
1 (646) 776-7795

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