04/09/2026
๐๐ผ๐ฟ๐ฒ๐ฐ๐น๐ผ๐๐๐ฟ๐ฒ ๐ถ๐ป๐๐ฒ๐ป๐๐ผ๐ฟ๐ ๐ท๐๐๐ ๐ฟ๐ผ๐๐ฒ ๐ฎ๐ฑ ๐ฝ๐ฒ๐ฟ๐ฐ๐ฒ๐ป๐ ๐๐ฒ๐ฎ๐ฟ ๐ผ๐๐ฒ๐ฟ ๐๐ฒ๐ฎ๐ฟ. ๐ง๐ต๐ฎ๐ ๐ต๐ฒ๐ฎ๐ฑ๐น๐ถ๐ป๐ฒ ๐ป๐ฒ๐ฒ๐ฑ๐ ๐ฟ๐ฒ๐ฎ๐น ๐ฐ๐ผ๐ป๐๐ฒ๐
๐.
FDIC data shows the dollar value of 1 to 4 family residential REO rose from 852 million in Q2 2025 to 1,066 million in Q2 2026, up 25 percent. Fannie Mae's REO count hit 4,967 at quarter end, up 3 percent from the prior quarter and 6 percent year over year. Both remain historically low and well below pre pandemic levels.
๐ช๐ต๐ฎ๐ ๐ฎ๐ฐ๐๐๐ฎ๐น๐น๐ ๐บ๐ผ๐๐ฒ๐ฑ
Overall delinquency, excluding foreclosures, rose from 3.93 percent to 4.37 percent year over year per the MBA. The share of loans in foreclosure climbed from 0.48 to 0.67 percent year over year, though it actually improved quarter over quarter on a seasonally adjusted basis, the 30 and 60 day buckets both ticked down. Serious delinquency, 90 plus days, is drifting up slowly but remains low.
๐ช๐ต๐ ๐๐ต๐ถ๐ ๐ถ๐ ๐ป๐ผ๐ ๐ฎ๐ฌ๐ฌ๐ด ๐ฎ๐ด๐ฎ๐ถ๐ป
Lending standards have held solid for a decade, and most homeowners carry real equity. That combination is why rising delinquencies do not translate into forced, cascading sales the way they did after the housing bubble. Borrowers with equity restructure or sell on their own terms instead of losing the home outright.
๐ง๐ต๐ฒ ๐ฟ๐ฒ๐ฎ๐ฑ ๐ณ๐ผ๐ฟ ๐ฎ๐ป๐๐ผ๐ป๐ฒ ๐ถ๐ป ๐ฑ๐ถ๐๐๐ฟ๐ฒ๐๐๐ฒ๐ฑ ๐ฑ๐ฒ๐ฏ๐
REOs and foreclosures are lagging indicators, and they are normalizing up off an unusually low base, not spiking. Expect delinquencies and foreclosures to keep climbing gradually. That is exactly the environment that produces workable deal flow, distressed borrowers who need a structured exit, without the systemic price collapse that would make buying that paper dangerous.
๐๐ง ๐ฑ๐ฒ๐น๐ถ๐ป๐พ๐๐ฒ๐ป๐ฐ๐ถ๐ฒ๐ ๐ธ๐ฒ๐ฒ๐ฝ ๐ป๐ผ๐ฟ๐บ๐ฎ๐น๐ถ๐๐ถ๐ป๐ด ๐ผ๐ณ๐ณ ๐ต๐ถ๐๐๐ผ๐ฟ๐ถ๐ฐ ๐น๐ผ๐๐ ๐๐ถ๐๐ต๐ผ๐๐ ๐ฎ ๐๐ฎ๐๐ฒ ๐ผ๐ณ ๐ณ๐ผ๐ฟ๐ฒ๐ฐ๐น๐ผ๐๐๐ฟ๐ฒ๐, ๐๐ต๐ฒ๐ฟ๐ฒ ๐ฑ๐ผ๐ฒ๐ ๐๐ต๐ฎ๐ ๐น๐ฒ๐ฎ๐๐ฒ ๐ฑ๐ฒ๐ฎ๐น ๐ณ๐น๐ผ๐ ๐ณ๐ผ๐ฟ ๐ฝ๐ฟ๐ถ๐๐ฎ๐๐ฒ ๐ฐ๐ฟ๐ฒ๐ฑ๐ถ๐?