What it suggested for originators
For mortgage specialists, the mix of rising non-mortgage debt and sticking around rate pressure have already appeared in underwriting files.
The most recent numbers from TransUnion showed an ongoing steady boost in home mortgage delinquencies in Q4 2025, but the delinquency rate is still below historic typical levels.
Home mortgages that were 60 or more days unpaid reached 1.58% in Q4 2025, according to TransUnion. This was a 19-basis-point increase year over year, however still lower than Q4 2019, pre-pandemic, which saw a delinquency rate of 1.64%.
Satyan Merchant, SVP of automobile and mortgage magnate at TransUnion, said much of the boost can be attributed to FHA and VA loans, while company loans appear to be carrying out well.
“We continue to see some boost in delinquency,” Merchant told Mortgage Professional America. “The secret with delinquency and home loan is that it’s actually about the loan type. The FHA program is designed for the lower-credit-score customer. You would not be surprised to see a boost on that side. I believe the agency loans seem to be running just great. That’s why I would truly compare this delinquency picture of what we saw in 2008 and 2009.”