Subprime lenders saw their overall levels of delinquency fall, even as 90-day subprime delinquency edged up.
According to National Delinquency Survey for the 4th quarter of 2002 released by the Mortgage Bankers Association of America (MBA), total subprime delinquency was 13.29%, down 99 basis points (BPS) from the third quarter and down 118 BPS from the fourth quarter of 2001.
MBA began tracking subprime loans separately in its last Delinquency Survey.
Subprime delinquencies 90 days or more past due rose from 3.30% in the prior quarter to 3.31%.
Loans starting the foreclosure process represented 7.79% of subprime loans.
MBA reported that delinquency on all conventional and government loans fell to 4.53% from 4.66% at the end of the 3rd quarter.
Fitch Ratings reported that subprime mortgage securitizations reach $160 billion in 2002, up from $63.7 billion in 1997. In its report, Fitch said that "the industry is challenged with worsening performance." As a result, the agency said it has placed additional focus and resources on its surveillance process.