Ginnie Mae Excludes Trial Payment Plans From Delinquency Ratios Ginnie Mae announced on Friday, April 24, 2026, that it will temporarily exclude loans in Federal Housing Administration (FHA) Trial Payment Plans (TPPs) from issuer delinquency calculations to address reporting anomalies caused by recent policy changes. The decision follows a sharp rise in reported FHA delinquency rates, which surged from 3.57% in September 2025 to 5.23% by January 2026, according to a report by the Center for Responsible Lending. This spike was attributed to an October 2025 FHA policy requiring borrowers to complete a TPP before receiving final loss mitigation solutions. Intercontinental Exchange (ICE) data from April 2026 revealed the national delinquency rate reached 3.72% in February, with FHA mortgages accounting for over 80% of the recent increase. Ginnie Mae’s March report indicated FHA delinquencies averaged 9.2% between October 2025 and February 2026. The corporation’s Global Market Analysis report clarified that the surge does not reflect a decline in borrower credit performance, as 30 and 60-day arrears remained stable. Instead, the report linked the rise to the extended resolution timelines required by the TPP process, which delays borrowers from transitioning to 90-day delinquency categories. Ginnie Mae President Joseph Gormley emphasized the temporary nature of the reporting adjustment in a memorandum issued on April 24. He stated, “As the new loss mitigation policy matures, the volume of TPPs is expected to normalize.” The exclusion of TPP loans from delinquency ratios will remain in place until trial plan volumes return to expected levels, ensuring issuers are not unfairly penalized for procedural shifts.#intercontinental_exchange #ginnie_mae #center_for_responsible_lending #joseph_gormley #fha
Fha Loans and the quiet policy shift easing borrower strain The Federal Housing Administration’s (FHA) recent changes to its loss mitigation process have sparked a significant shift in how delinquency rates are measured within the mortgage industry. This policy adjustment, implemented in October 2025, has led to a notable increase in reported delinquency numbers, but experts argue this reflects a reporting change rather than a surge in borrower financial distress. The shift has prompted regulatory and industry responses, including temporary adjustments by Ginnie Mae, the government-sponsored enterprise that guarantees mortgage-backed securities. The spike in delinquency rates began after the FHA revised its loss mitigation waterfall, a framework that determines the order in which borrowers receive relief options. Under the updated structure, borrowers facing delinquency must complete a trial payment plan before accessing certain relief measures, such as partial claims. This change meant more loans remained in trial payment plan status for extended periods, contributing to a rise in reported delinquency rates. A report by Kavav Bhagat of the Center for Responsible Lending highlighted this as a reporting anomaly rather than an indicator of worsening borrower conditions. The data underscores this point: delinquent FHA loans that were 90 or more days past due, but not in foreclosure or bankruptcy, increased from 3.57% in September 2025 to 5.23% in January 2026. However, this rise does not align with a broader deterioration in borrower finances. Early-stage delinquency metrics, such as new delinquencies averaging 5.2% and 60-day delinquencies hovering around 1.8%, remained relatively stable.#federal_housing_administration #ginnie_mae #kavav_bhagat #center_for_responsible_lending #joseph_gormley
