Fannie Mae and Freddie Mac both reported rising serious delinquencies in the third quarter of 2026 — and both sharply increased the money they set aside for loans that may go bad. The two enterprises guarantee roughly half of all U.S. mortgages, and both remain profitable. But the direction is unmistakable: more borrowers are falling seriously behind, concentrated in loans made in 2022 through 2024.
| Key figure | Q3 2026 | Change |
|---|---|---|
| Fannie Mae single-family serious delinquency rate | 0.62% | Up from 0.58% in Q2 and 0.54% a year earlier |
| Freddie Mac single-family serious delinquency rate | 0.61% | Up from 0.57% a year earlier |
| Fannie Mae provision for credit losses | $1.14 billion | Up from $485 million in Q2 |
| Freddie Mac provision for credit losses | $800 million | Up from $175 million a year earlier |
| Borrower-level 60+ day mortgage delinquency (TransUnion) | 1.64% | Serious delinquency returning toward pre-pandemic levels |
What the two giants reported
Fannie Mae earned $4.2 billion in the third quarter, up 5 percent from the second quarter. Its single-family serious delinquency rate — loans 90 or more days past due or in foreclosure — rose to 0.62 percent as of September 30, from 0.58 percent at the end of June and 0.54 percent a year earlier. Fannie Mae tripled its single-family credit-loss provision to $694 million.
Freddie Mac reported a similar picture a day later: net income of $3.2 billion, up 17 percent from a year earlier, a single-family serious delinquency rate of 0.61 percent at September 30 (up from 0.57 percent a year earlier), and an $800 million credit-loss provision, versus $175 million a year earlier. Freddie Mac said the rise was driven primarily by higher delinquency rates on loans originated in 2022 through 2024.
Both stressed that the numbers remain low in absolute terms — Freddie Mac’s single-family book carries a weighted average loan-to-value ratio of 54 percent. This is a slow drift upward from the unusually clean credit performance of the pandemic years, not a crisis.
Where the stress is concentrated
The pattern matches other data sources. TransUnion’s latest Credit Industry Insights Report, summarized November 9, found the borrower-level 60-plus-day mortgage delinquency rate hit 1.64 percent in the third quarter — and FHA loans now make up nearly half of all seriously delinquent mortgage accounts. That echoes our earlier reporting: ATTOM’s third-quarter data showed FHA loans driving the post-pandemic high in foreclosure auctions.
California remains part of the national picture rather than an outlier: ATTOM’s third-quarter report showed California foreclosure auction volume up 80 percent year over year, the second-largest increase of any state. The GSEs do not break out state-level delinquency in their earnings releases, so no new California-specific figure is available from this round of reports.
The counterweight: record home equity
What keeps this from becoming a foreclosure wave is equity. Intercontinental Exchange’s November Mortgage Monitor reported that home equity and the number of homeowners with at least $1 million in equity both reached record third-quarter highs — 2.4 million mortgage holders are now equity millionaires. A borrower who falls behind but holds substantial equity can sell, refinance, or negotiate a workout; Freddie Mac said it helped about 21,000 families remain in their homes through workouts in the third quarter alone. Foreclosure filings remain well below historical norms: ICE counted about 303,000 properties in pre-sale foreclosure inventory at the end of September, the most since early 2019, but that is growth from a very low base.
What it means for homeowners, buyers, and investors
If your loan is guaranteed by Fannie Mae or Freddie Mac and you are falling behind, contact your servicer about loss-mitigation options before the loan reaches 90 days past due, when it counts as seriously delinquent. See our guide to avoiding foreclosure and how the foreclosure process works.
For buyers and investors, the GSE results point to a slow, steady increase in distressed supply rather than a sudden flood. With equity this high, few distressed properties are likely to reach auction at deep discounts. Our find foreclosures page explains where to look, and start here if you are new to the process.
What to watch next
Three releases will show whether the third-quarter drift continues: the Mortgage Bankers Association’s National Delinquency Survey for the third quarter, due in the coming days; ATTOM’s October foreclosure market report, expected later this month; and ICE’s October First Look, due around November 24. If they confirm the GSE pattern, the story stays the same: distress rising gradually from a low base, cushioned by record equity.
Sources: Fannie Mae, Third Quarter 2026 Financial Results, October 28, 2026; Freddie Mac, Third Quarter 2026 Financial Results, October 29, 2026; TransUnion Credit Industry Insights Report, as summarized November 9, 2026; Intercontinental Exchange, November 2026 Mortgage Monitor, November 9, 2026. This article is general educational information, not legal, tax, or financial advice.