twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

1-in-9 Borrowers Delinquent or in Foreclosure

7.88% 30-day delinquency as of Dec. 31

March 5, 2009

By staff

More than one-in-nine U.S. home mortgages was either in default or in foreclosure at the end of last year. But signs of life are emerging on the U.S. subprime portfolio.

Seasonally adjusted residential delinquency of at least 30 days was 7.88 percent as of Dec. 31, 2008, the Mortgage Bankers Association reported today in its National Delinquency Survey. Delinquency -- which excludes loans in foreclosure -- rose from 6.99 percent on Sep. 30, 2008, and 5.82 percent on Dec. 31, 2007.

MBA said the data reflected 45,396,181 total loans, including 34,977,566 prime loans, 5,302,130 subprime mortgages and 3,991,814 loans insured by the Federal Housing Administration. Another 1,124,671 mortgages were guaranteed by the Department of Veteran Affairs.

Looking at just prime mortgages, seasonally adjusted delinquency of at least 30 days was 5.06 percent at December's end, climbing from 4.34 percent at the end of September. Subprime delinquency was 21.88 percent, rising from 20.03 percent, and late payments on FHA loans were 13.73 percent -- jumping from 12.92 percent.

Delinquency was highest in Mississippi, where it stood at 13.11 percent at the end of last year. Nevada was next, with late payments at 11.12 percent, followed by Florida, at 11.09 percent.

North Dakota had the lowest delinquency rate -- at 3.56 percent.

The causes of delinquency are expected to shift from bad underwriting to employment and income losses.

"For example, the 30-day delinquency rate for subprime ARMs continues to fall and is at its lowest point since the first quarter of 2007," MBA Chief Economist Jay Brinkmann said in the report. "Absent a sudden increase in short-term rates, this trend should continue because the last 2-28 subprime ARMs ... were written in the first half of 2007.

"The problem with initial resets is largely behind us, although the impact of the resets was generally overstated."

The report indicated that a surge in serious delinquency of at least 90 days to 23.11 percent was primarily due to a reluctance by servicers to move many of their delinquent loans through the foreclosure process.

Foreclosures were started on 1.01 percent of residential loans during the fourth quarter, better than 1.07 percent in the third quarter, according to MBA's data. The decline was likely tied to moratoria implemented by private companies and government entities during the latest period.

Averaging all four quarters of last year, the foreclosure start rate was 1.06 percent, jumping from 0.71 percent in 2007.

Foreclosures started on prime loans during the latest quarter were 0.63 percent, while subprime foreclosure starts were 3.72 percent and new FHA filings were 0.94 percent. On a unadjusted basis, prime foreclosure starts during the fourth quarter rose to 0.68 percent from the third quarter's 0.61 percent, while subprime foreclosure starts actually fell to 3.96 percent from 4.23 percent.

Seasonally adjusted new foreclosures in Nevada were 2.65 percent, higher than any other state. No. 2 was Florida, with a 2.36 percent rate, and Arizona, at 2.07 percent.

At the other end of the spectrum was North Dakota, which saw foreclosures initiated on just 0.30 percent of its loans.

The rate of loans in foreclosure -- not seasonally adjusted -- was 3.30 percent as of Dec. 31, surging from 2.97 percent the prior quarter and 2.04 percent the prior year. Brinkmann attributed the increase to the various moratoria that are preventing foreclosures from being completed.

Prime loans had a 1.88 percent foreclosure rate, rising 30 basis points from Sep. 30, and subprime foreclosures were 13.71 percent, jumping from 12.55 percent. The rate on FHA loans was 2.43 percent, up from 2.32 percent.

Florida's foreclosure rate was highest at 8.95 percent, followed by Nevada's 6.58 percent and Arizona at 4.64 percent.

Including unadjusted delinquency of at least 30 days, which was 8.63 percent on Dec 31, 11.93 percent of all U.S. borrowers were either in default or in foreclosure at the end of 2008.

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.

Nonprime and Subprime News | Subprime Statistics
Stories about non-QM products. Coverage of subprime, Alt-A and
hard money lending. Home-equity loans and home-equity lines of credit.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders