Graph and download economic data for Delinquency Rate on Single-Family Residential Mortgages, Booked in Domestic Offices, All Commercial Banks (DRSFRMACBS) from Q1 1991 to Q3 2025 about domestic offices, delinquencies, 1-unit structures, mortgage, family, residential, commercial, domestic, banks, depository institutions, rate, and USA.

Following the drastic increase directly after the COVID-19 pandemic, the delinquency rate started to gradually decline, falling below *** percent in the second quarter of 2023. In the second half of 2023, the delinquency rate picked up but remained stable throughout 2024. In the second quarter of 2025, **** percent of mortgage loans were delinquent. That was significantly lower than the **** percent during the onset of the COVID-19 pandemic in 2020 or the peak of *** percent during the subprime mortgage crisis of 2007-2010. What does the mortgage delinquency rate tell us? The mortgage delinquency rate is the share of the total number of mortgaged home loans in the U.S. where payment is overdue by 30 days or more. Many borrowers eventually manage to service their loan, though, as indicated by the markedly lower foreclosure rates. Total home mortgage debt in the U.S. stood at almost ** trillion U.S. dollars in 2024. Not all mortgage loans are made equal ‘Subprime’ loans, being targeted at high-risk borrowers and generally coupled with higher interest rates to compensate for the risk. These loans have far higher delinquency rates than conventional loans. Defaulting on such loans was one of the triggers for the 2007-2010 financial crisis, with subprime delinquency rates reaching almost ** percent around this time. These higher delinquency rates translate into higher foreclosure rates, which peaked at just under ** percent of all subprime mortgages in 2011.

Federal Housing Administration (FHA) loans had the highest delinquency rate in the United States in 2025. As of the second quarter of the year, ***** percent of the outstanding one-to-four family housing mortgage loans were ** days or more delinquent. This percentage was lower for conventional loans and Veterans Administration loans. Despite a slight increase, the delinquency rate for all mortgages was one of the lowest on record.

Graph and download economic data for Delinquency Rate on Commercial Real Estate Loans (Excluding Farmland), Booked in Domestic Offices, All Commercial Banks (DRCRELEXFACBS) from Q1 1991 to Q3 2025 about farmland, domestic offices, delinquencies, real estate, commercial, domestic, loans, banks, depository institutions, rate, and USA.

The Global Financial Crisis of 2008-09 was a period of severe macroeconomic instability for the United States and the global economy more generally. The crisis was precipitated by the collapse of a number of financial institutions who were deeply involved in the U.S. mortgage market and associated credit markets. Beginning in the Summer of 2007, a number of banks began to report issues with increasing mortgage delinquencies and the problem of not being able to accurately price derivatives contracts which were based on bundles of these U.S. residential mortgages. By the end of 2008, U.S. financial institutions had begun to fail due to their exposure to the housing market, leading to one of the deepest recessions in the history of the United States and to extensive government bailouts of the financial sector.

Subprime and the collapse of the U.S. mortgage market

The early 2000s had seen explosive growth in the U.S. mortgage market, as credit became cheaper due to the Federal Reserve's decision to lower interest rates in the aftermath of the 2001 'Dot Com' Crash, as well as because of the increasing globalization of financial flows which directed funds into U.S. financial markets. Lower mortgage rates gave incentive to financial institutions to begin lending to riskier borrowers, using so-called 'subprime' loans. These were loans to borrowers with poor credit scores, who would not have met the requirements for a conventional mortgage loan. In order to hedge against the risk of these riskier loans, financial institutions began to use complex financial instruments known as derivatives, which bundled mortgage loans together and allowed the risk of default to be sold on to willing investors. This practice was supposed to remove the risk from these loans, by effectively allowing credit institutions to buy insurance against delinquencies. Due to the fraudulent practices of credit ratings agencies, however, the price of these contacts did not reflect the real risk of the loans involved. As the reality of the inability of the borrowers to repay began to kick in during 2007, the financial markets which traded these derivatives came under increasing stress and eventually led to a 'sudden stop' in trading and credit intermediation during 2008.

Market Panic and The Great Recession

As borrowers failed to make repayments, this had a knock-on effect among financial institutions who were highly leveraged with financial instruments based on the mortgage market. Lehman Brothers, one of the world's largest investment banks, failed on September 15th 2008, causing widespread panic in financial markets. Due to the fear of an unprecedented collapse in the financial sector which would have untold consequences for the wider economy, the U.S. government and central bank, The Fed, intervened the following day to bailout the United States' largest insurance company, AIG, and to backstop financial markets. The crisis prompted a deep recession, known colloquially as The Great Recession, drawing parallels between this period and The Great Depression. The collapse of credit intermediation in the economy lead to further issues in the real economy, as business were increasingly unable to pay back loans and were forced to lay off staff, driving unemployment to a high of almost 10 percent in 2010. While there has been criticism of the U.S. government's actions to bailout the financial institutions involved, the actions of the government and the Fed are seen by many as having prevented the crisis from spiraling into a depression of the magnitude of The Great Depression.

Graph and download economic data for Delinquency Rate on All Loans, All Commercial Banks (DRALACBN) from Q1 1985 to Q3 2025 about delinquencies, commercial, loans, banks, depository institutions, rate, and USA.

Graph and download economic data for Delinquency Rate on Loans to Finance Agricultural Production, All Commercial Banks (DRFAPGACBN) from Q1 1987 to Q3 2025 about delinquencies, finance, agriculture, commercial, production, loans, banks, depository institutions, rate, and USA.

As of March 2025, the 30-day delinquency rate for commercial mortgage-backed securities (CMBS) varied per property type. The share of late payments for office CMBS was the highest at over **** percent, about ***** percentage points higher than the average for all asset classes. A 30-day delinquency refers to payments that are one month late, regardless of how many days the month has. Commercial mortgage-backed securities are fixed-income investment products which are backed by mortgages on commercial property.

Graph and download economic data for Delinquency Rate on Consumer Loans, All Commercial Banks (DRCLACBS) from Q1 1987 to Q3 2025 about delinquencies, commercial, loans, consumer, banks, depository institutions, rate, and USA.

The delinquency rate on real estate loans at commercial banks in the United States rose slightly between the fourth quarter of 2022 and the fourth quarter of 2024. Nevertheless, delinquencies remained below the 2020 levels, when the share of loans past due 30 days rose due to the COVID-19 pandemic. Recently, the gap between residential and commercial real estate loans has narrowed, with the delinquency rate for commercial real estate rising faster than for residential.

Mortgage delinquency rates increased in most states in 2024. That year, the percentage of total mortgage debt that was more than ** days delinquent was the highest in Louisiana, at **** percent. Conversely, Wisconsin and Montana had the lowest delinquency rates, at under **** percent. The overall mortgage delinquency rate in the United States declined since spiking at the beginning of the pandemic, as the U.S. job market rebounded over the course of 2020 and 2021.

Graph and download economic data for Delinquency Rate on Credit Card Loans, All Commercial Banks (DRCCLACBS) from Q1 1991 to Q3 2025 about credit cards, delinquencies, commercial, loans, banks, depository institutions, rate, and USA.

Delinquency rates for credit cards picked up in 2025 in the United States, leading to the highest rates observed since 2008. This is according to a collection of one of the United States' federal banks across all commercial banks. The high delinquency rates were joined by the highest U.S. credit card charge-off rates since the Financial Crisis of 2008. Delinquency rates, or the share of credit card loans overdue a payment for more than 60 days, can sometimes lead into charge-off, or a writing off the loan, after about six to 12 months. These figures on the share of credit card balances that are overdue developed significantly between 2021 and 2025: Delinquencies were at their lowest point in 2021 but increased to one of their highest points by 2025. This is reflected in the growing credit card debt in the United States, which reached an all-time high in 2023. As of Q2 2025, the delinquency rate stands at 3.05%.

In 2023, the delinquency rates of all types of mortgage lenders in Canada increased. As of the fourth quarter of the year, approximately 1.05 percent of loans in the loan portfolios of mortgage investment entities (MIEs) were classified as delinquent, which was a decrease from the 0.78 percent delinquency rate a year ago. A loan is reported by lenders as being delinquent after 270 days of late payments.

Consumer debt in the U.S. has kept rising, reaching new highs in mortgage, credit card, auto, and student loan balances. Two real‑world impacts: Homebuyers face steeper payments because mortgage balances and rates are rising, tightening affordability. And millions of student loan borrowers resumed payments today, triggering spikes in delinquency rates...

Delinquency Prevention Platforms for Mortgage Market Outlook

According to our latest research, the global market size for Delinquency Prevention Platforms for Mortgage reached USD 3.62 billion in 2024, reflecting strong demand for advanced risk management solutions across the mortgage sector. The market is projected to expand at a robust CAGR of 11.2% from 2025 to 2033, with the total market size expected to reach USD 9.29 billion by 2033. This growth is primarily driven by the increasing digital transformation initiatives in financial institutions and the urgent need for proactive measures to mitigate mortgage delinquency risks as economic volatility continues to impact borrower repayment behaviors.

One of the primary growth factors for the Delinquency Prevention Platforms for Mortgage market is the rapid adoption of digital technologies by financial institutions aiming to streamline loan servicing and enhance operational efficiencies. The integration of artificial intelligence, machine learning, and big data analytics into these platforms allows lenders to identify early warning signs of potential delinquencies, assess borrower risk profiles more accurately, and automate communication processes. This not only reduces manual intervention and operational costs but also significantly improves the ability of lenders to proactively engage with at-risk borrowers, thereby reducing overall default rates. As the mortgage landscape becomes increasingly competitive, organizations are investing heavily in sophisticated software and services that offer predictive insights and robust risk assessment capabilities.

Another significant driver is the evolving regulatory landscape, which is compelling mortgage lenders and servicers to adopt comprehensive compliance frameworks. Governments and regulatory bodies across regions are mandating stricter oversight and reporting requirements to ensure financial stability and consumer protection. Delinquency prevention platforms are being tailored to help institutions meet these stringent standards by providing real-time monitoring, automated compliance checks, and detailed audit trails. This not only aids in minimizing legal and reputational risks but also enhances lender credibility and customer trust. The growing emphasis on regulatory compliance is expected to further fuel the demand for advanced delinquency management solutions over the forecast period.

The market is also benefitting from a heightened focus on customer experience and retention. As mortgage borrowers increasingly expect personalized and timely communication from their lenders, delinquency prevention platforms are evolving to include advanced customer engagement modules. These modules leverage data analytics to tailor outreach strategies, offer customized repayment plans, and provide educational resources to borrowers facing financial hardships. By proactively addressing borrower needs and concerns, lenders can foster long-term relationships, minimize the risk of default, and enhance brand loyalty. This customer-centric approach is becoming a critical differentiator in the mortgage industry, further accelerating the adoption of comprehensive delinquency prevention solutions.

From a regional perspective, North America continues to dominate the Delinquency Prevention Platforms for Mortgage market, accounting for the largest share in 2024, driven by the early adoption of advanced technologies and a highly regulated financial services environment. However, Asia Pacific is emerging as the fastest-growing region, propelled by rapid urbanization, rising homeownership rates, and increasing investments in digital infrastructure. European markets are also witnessing steady growth, supported by robust regulatory frameworks and a strong focus on risk management. Latin America and the Middle East & Africa are gradually catching up, with financial institutions in these regions recognizing the value of proactive delinquency management in enhancing portfolio performance and mitigating credit risks.

Component Analysis

The Delinquency Prevention Platforms for Mortgage market is segmented by component into Software and Services, each playing a pivotal role in the overall ecosystem. The software segment encompasses core platforms equipped with analytics engines, risk assessment tools, early warning systems, and automated communication modules. Thes

Homeowners in financial distress can use bankruptcy to avoid defaulting on their mortgages, since filing loosens their budget constraints. But the 2005 bankruptcy reform made bankruptcy less favorable to homeowners and therefore caused mortgage defaults to rise. We test this relationship and find that the reform caused prime and subprime mortgage default rates to rise by 23% and 14%, respectively. Default rates rose even more for homeowners who were particularly negatively affected by the reform. We calculate that bankruptcy reform caused mortgage default rates to rise by one percentage point even before the start of the financial crisis. (JEL D14, G01, G21, K35)

The mortgage delinquency rate for Federal Housing Administration (FHA) loans in the United States has declined since 2020, when it peaked at ***** percent. In the second quarter of 2025, ***** percent of FHA loans were delinquent. Historically, FHA mortgages have the highest delinquency rate of all mortgage types.

The percentage of loans held by U.S. commercial banks that are past due by 30 days or more or are no longer accruing interest. A rising delinquency rate may indicate growing financial stress among borrowers and tighter lending conditions, while a declining rate suggests healthier loan performance and greater financial stability.

Servicing Advances Market Outlook

According to our latest research, the global servicing advances market size reached USD 16.8 billion in 2024, reflecting robust growth driven by increased mortgage origination, regulatory complexity, and the rising need for liquidity management in loan servicing portfolios. The market is projected to grow at a CAGR of 6.7% from 2025 to 2033, reaching an estimated USD 30.6 billion by 2033. This upward trajectory is propelled by the digital transformation of financial services, increasing adoption of automation in loan servicing, and the expansion of mortgage-backed securities markets worldwide.

One of the primary growth factors in the servicing advances market is the increasing complexity of mortgage and loan servicing operations, especially in the wake of regulatory changes and evolving borrower expectations. Financial institutions and mortgage servicers are under mounting pressure to maintain liquidity and ensure timely payments to investors, even when borrowers default or delay payments. This has led to a surge in demand for principal, interest, tax, and insurance advances, as these mechanisms help maintain the cash flow and integrity of securitized loan portfolios. Additionally, the rise in non-performing loans and loan modifications, particularly during economic downturns, further amplifies the need for efficient servicing advances solutions to mitigate risks and ensure compliance with investor guidelines.

Another significant driver of market growth is the rapid adoption of digital technologies and automation in loan servicing processes. The integration of advanced analytics, machine learning, and cloud-based platforms has enabled servicers to streamline advance calculations, improve risk assessment, and enhance operational efficiency. These technological advancements facilitate real-time monitoring of loan performance, automate the disbursement and recovery of advances, and reduce manual errors, thereby lowering operational costs. Furthermore, the increasing collaboration between fintech firms and traditional financial institutions is fostering innovation in the servicing advances landscape, with new products and services tailored to address the evolving needs of both residential and commercial loan portfolios.

The expanding scope of the servicing advances market is also fueled by the globalization of mortgage-backed securities and the diversification of asset classes under management. As institutional investors seek higher yields and diversified risk, the demand for structured finance products—such as commercial mortgage-backed securities (CMBS), auto loans, and student loans—continues to rise. This trend has led to the proliferation of servicing advances across various loan types and end-users, including banks, non-banking financial institutions, and specialized mortgage servicers. The increasing participation of non-traditional lenders and the entry of new market players are intensifying competition and driving further innovation in servicing advance solutions.

Regionally, North America dominates the global servicing advances market, accounting for over 40% of total revenue in 2024, followed by Europe and Asia Pacific. The United States, in particular, remains the largest market due to its mature mortgage industry, high securitization rates, and stringent regulatory environment. Europe is witnessing steady growth, driven by regulatory harmonization and the expansion of cross-border lending, while Asia Pacific is emerging as a high-growth region, supported by rapid urbanization, rising homeownership rates, and the digitalization of financial services. Latin America and the Middle East & Africa, although smaller in market share, are expected to witness accelerated growth as financial inclusion initiatives and mortgage market reforms gain momentum.

Type Analysis

The servicing advances market by type is segmented into principal advances, interest advances, tax and insurance advances, corporate advances, and others. Principal advances represent a significant portion of the market, as they are crucial in maintaining scheduled principal payments to investors even when borrowers default. These advances ensure the stability of cash flows in securitized portfolios, thereby preserving investor confidence and market liquidity. The demand for principal advances is particularly high in regions with elevated mortgage delinquency rates and in markets where mortgage-backed