Student debt, negative equity fuel pockets of mortgage risk

The report revealed that nearly 20% of mortgage holders also have student loan debt, a figure that climbs to almost 30% among Federal Housing Administration (FHA) borrowers.

Mortgage holders who are behind on their student loans are four times more likely to be delinquent on their mortgages, ICE reported. For reference, ICE said that the national delinquency rate ticked down 2 basis points (bps) to 3.2% in May, although it is up 16 bps year over year.

“While the slowdown in home price growth may be easing affordability pressures, and negative equity volumes remain low, we’re beginning to see localized pockets of recent homebuyers becoming financially exposed,” said Andy Walden, head of mortgage and housing market research at ICE.

“Borrowers with minimal equity —…