Fannie Mae reported that the serious delinquency rate decreased to 4.08% in June, down from 4.14% in May. This is down from 4.99% in June of 2010. The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59%.



Freddie Mac reported that the Single-Family serious delinquency rate decreased to 3.50% in June from 3.53% in May. This is down from 3.96% in May 2010. Freddie's serious delinquency rate peaked in February 2010 at 4.20%.



These are loans that are "three monthly payments or more past due or in foreclosure".



Click on graph for larger image in graph gallery.



Some of the rapid increase in 2009 was probably because of foreclosure moratoriums, and also because loans in trial mods were considered delinquent until the modifications were made permanent.



Now the serious delinquency rate is falling as Fannie and Freddie work through the backlog of loans and either modify the loan, foreclose, short sale, or the loan cures. But there is a long way to go ...



The normal serious delinquency rate is under 1%. At the current rate of decline, Fannie will be back to "normal" in 2014, and Freddie will be back to "normal" in 2017 or so!