Subprime Share by Market

On a national level, the share of subprime loans outstanding as of yearend 2006 was 14.7 percent, slightly above 14.6 percent in the previous year, according to data provided to MortgageDaily.com by LoanPerformance. However, the share of subprime loans past due 60 days or more grew to 11.8 percent from 7.7 percent at yearend 2005.

Out of 331 metropolitan statistical areas, the one in which subprime loans accounted for the largest percentage of its loans was Mcallen-Edinburg-Mission, Texas. The area’s subprime share of loans was 26.0 percent and the portion that was 60+ days delinquent was 11.6 percent, up from 25.4 percent and 9.5 percent respectively, the data chart showed.

LoanPerformance reported that the Memphis, Tenn.-Ark.-Miss.-market had the second-highest subprime share — 24.0 percent — and 19.5 percent of the subprime loans were past due 60 days or more. While the area’s subprime loan share grew 1.2 percent from the previous year , the percentage of delinquent subprime loans rose 4.3 percent.

In Sharon, Penn., 23.1 percent of loans were subprime last year and 16.9 percent of subprime originations were not current. Compared to 2005, the loans share was off slightly but the portion of delinquent loans grew.

Miami, Fla., followed closely behind with 23.0 percent of its loans last year being subprime and 8.3 percent being delinquent, up from 21.7 percent and 6.2 percent, respectively.

While the 22.3 percent subprime share of loans in the Richmond-Petersburg, Va., area was the fifth-highest out of all markets, the area’s 11.7 percent share increase was the most. The Richmond area’s portion of 60+ day delinquent subprime loans was 10.7 percent, compared to 6.5 percent in 2005.

About a third down the list of areas with the largest subprime share was Dallas, Texas, in which 13.5 percent of its loans were subprime, edging up from the previous year. In Los Angeles-Long Beach, Calif., the subprime share of loans edged down from the prior year to 12.4.

Near the halfway point was the Chicago, Ill., market with 12.0 percent of its loans being subprime.

Further below was New York City’s subprime share, which at 10.6 percent slipped from the previous year, while its portion of subprime delinquent loans shot up to 11.6 from 6.8 percent over the year.

The following metro areas had the highest share of subprime loans past due 60 days or more: Cleveland-Lorain-Elyria, Ohio, with 24.9 percent; Detroit, Mich., with 24.6 percent; Jackson, Miss., at 22.7 percent; Jackson, Mich., with 22.0 percent; and Youngstown-Warren, Ohio, at 21.8 percent.