Rate of New Foreclosures Hits Record

Report From the Mortgage Bankers Association shows more loans are going bad.

By SHARE

The Mortgage Bankers Association on Friday released its National Delinquency Survey for the second quarter. Here are the ugly details:

From the Mortgage Bankers Association:

The delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 6.41 percent of all loans outstanding at the end of the second quarter of 2008, up six basis points from the first quarter of 2008, and up 129 basis points from one year ago on a seasonally adjusted basis....

The percentage of loans in the foreclosure process at the end of the second quarter was 2.75 percent, an increase of 28 basis points from the first quarter of 2008 and 135 basis points from one year ago.

The percentage of loans on which foreclosure actions were started during the second quarter was 1.08 percent, up 7 basis points from last quarter and up 49 basis points from one year ago on a non-seasonally adjusted basis.

The seasonally adjusted total delinquency rate continues to be the highest recorded in the MBA survey. The increase in the overall delinquency rate was driven by increases in the number of loans 90 or more days past due, primarily in California and Florida. . . .

Once again this quarter, the rate of foreclosure starts and the percentage of loans in the process of foreclosure set new records.

The foreclosure starts rate differed greatly by loan type. For prime loans, foreclosure starts on fixed-rate loans were 0.34 percent, an increase of five basis points, while prime ARM foreclosure starts were 1.82 percent, a 26 basis point increase.

For subprime loans, fixed-rate foreclosure starts increased 27 basis points to 2.07 percent and subprime ARM foreclosure starts increased 31 basis points to 6.63 percent.

FHA foreclosure starts decreased one basis point to 0.95 percent and VA foreclosure starts increased six basis points to 0.57 percent, all on a non-seasonally adjusted basis....

Rates of foreclosures started—all loans

Date      Seasonally Adjusted Non-Seasonally Adjusted Difference
2000 - Q1 0.36 0.36 0.00
2000 - Q2 0.31 0.30 0.01
2000 - Q3 0.44 0.42 0.02
2000 - Q4 0.41 0.43 -0.02
2001 - Q1 0.39 0.40 -0.01
2001 - Q2 0.48 0.47 0.01
2001 - Q3 0.48 0.46 0.02
2001 - Q4 0.44 0.47 -0.03
2002 - Q1 0.44 0.45 -0.01
2002 - Q2 0.50 0.49 0.01
2002 - Q3 0.45 0.44 0.01
2002 - Q4 0.41 0.42 -0.01
2003 - Q1 0.41 0.41 0.00
2003 - Q2 0.36 0.36 0.00
2003 - Q3 0.44 0.43 0.01
2003 - Q4 0.45 0.46 -0.01
2004 - Q1 0.47 0.46 0.01
2004 - Q2 0.40 0.39 0.01
2004 - Q3 0.40 0.42 -0.02
2004 - Q4 0.46 0.46 0.00
2005 - Q1 0.42 0.42 0.00
2005 - Q2 0.39 0.38 0.01
2005 - Q3 0.41 0.41 0.00
2005 - Q4 0.42 0.42 0.00
2006 - Q1 0.41 0.42 -0.01
2006 - Q2 0.43 0.40 0.03
2006 - Q3 0.46 0.47 -0.01
2006 - Q4 0.54 0.57 -0.03
2007- Q1 0.58 0.59 -0.01
2007 - Q2 0.65 0.59 0.06
2007 - Q3 0.78 0.78 0.00
2007 - Q4 0.83 0.88 -0.05
2008 - Q1 0.99 1.01 -0.02
2008 - Q2 1.19 1.08 0.11

Source: MBA NDS