twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com 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 MortgageDaily.com.

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

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

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

Press Releases
Reports and announcements from MortgageDaily.com.

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

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
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.


Delinquency Improves Except for Subprime ARMs

MBA releases 1st quarter delinquency survey

June 21, 2005

By COCO SALAZAR


A smaller share of borrowers were late on their house payments during the first quarter, the industry's most prominent trade group said Tuesday, and the improvement is expected to continue for a few more quarters. But subprime borrowers with adjustable rate loans didn't fare as well.

The first quarter, seasonally adjusted delinquency rate for one-to-four unit residential mortgages was 4.31%, sliding seven basis points from the previous quarter and 15 BPS from a year earlier, according to the latest National Delinquency Survey released today by the Mortgage Bankers Association.

The last time delinquencies were this low was in the second quarter 2000 when the rate was 4.11%.

The quarterly improvement was due to decreases in the "30 to 59 days" and "60 to 89 days" delinquent loan categories, while the percentage of loans 90 days or more past due nudged up, the survey said.

"Economic growth is expected to remain strong over the next couple of years," said Doug Duncan, MBA chief economist, in a written statement. "Likewise, job growth should be steady in the presence of modest interest rate rises. These expectations likely mean we will continue to see moderate declines in delinquencies for the next few quarters."

Beyond that, however, a maturing portfolio, as well as an increased share of subprime loans -- up to 13% from 10% a year ago -- are factors that could potentially worsen delinquency. The vast majority of loans in the national portfolio were originated between 2002 and 2004. Because loans tend to potentially become delinquent usually about three to five years after origination, only loans originated in 2002 are entering peak delinquency period while others still have to mature, MBA chief economist Doug Duncan commented in the conference call.

Prime adjustable-rate mortgages had a delinquency rate of 2.06% in the first quarter, down from the fourth quarter and a year ago, the survey showed, while the 2.02% rate for prime fixed-rate mortgages edged down from the previous quarter but nudged up from a year earlier.

In the subprime sector, the seasonally adjusted delinquency rate for ARMs jumped 42 BPS from the previous quarter to 10.25%, but was down a whopping 74 BPS from the first quarter last year. Fixed-rate subprime loans had a seasonally adjusted delinquency rate of 9.10% -- sinking 62 BPS during the quarter and plunging 153 BPS over the year.

The economist pointed out many ARMs will be reaching adjusting points in 2006 or 2007 and could negatively affect delinquency rates.

On a quarter-to-quarter basis, off all loans (prime, subprime, VA and FHA), the delinquency rate decreased the most -- 50 BPS -- for FHA loans to 11.73%, and the largest increase -- 29 BPS -- was seen in subprime loans to 10.62%. On a year-over-year basis, however, FHA loan delinquency slightly rose, while subprime loan (ARM and fixed rate) delinquency improved by 104 BPS.

The foreclosure inventory percentage decreased for all loan types from the fourth quarter and last year at this time, most notably occurring with subprime loans -- down 33 BPS and 137 BPS from those respective periods to 3.49% in the first quarter.

Since the fourth quarter, the percentage of new foreclosures decreased seven BPS for all loans. but were 20 basis points better for FHA loans. Over the last year, the seasonally adjusted percentage of new foreclosures fell 15 BPS overall and 44 BPS for subprime loans.

Major factors contributing to improved numbers was growth in real income, employment and economy, as well as a good amount of borrowers refinancing into lower-rate loans during the period, which saw the 10-year Treasury fall 17 BPS, Duncan said.

The seriously delinquent rate -- the non-seasonally adjusted percentage of loans that are 90 days or more delinquent or in the process of foreclosure -- was introduced to the survey at 1.89%, 18 BPS lower than fourth quarter and 25 BPS lower than the first quarter 2004.

The latest survey reportedly covered nearly 40 million loans -- 29.4 million being prime, 5.1 million subprime, and 5.0 million government loans.


Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.

email: [email protected]


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.


Mortgage Rate News | Mortgage Market Index | ARM indices | ARM Statistics
Average fixed and ARM rates. Rate forecasts. Quotes on ARM indexes including COFI, MTA, LIBOR & Treasuries. Rate reset studies and reports. Mortgage rate litigation.


Logout forgot
password?

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

MBS

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