The Mortgage Bankers Association released its National Delinquency Survey Friday. The report shows that the national delinquency rate for one-to-four-unit residential properties and the percentage of loans in foreclosure have reached their highest levels in the survey’s nearly three-decade-long history.
From the MBA:
The delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 6.99 percent of all loans outstanding at the end of the third quarter of 2008, up 58 basis points from the second quarter of 2008, and up 140 basis points from one year ago on a seasonally adjusted basis, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey…
The delinquency rate includes loans that are at least one payment past due but does not include loans somewhere in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the third quarter was 2.97 percent, an increase of 22 basis points from the second quarter of 2008 and 128 basis points from one year ago. The percentage of loans in the process of foreclosure set a new record this quarter.
In a statement accompanying the release, Jay Brinkmann, MBA’s Chief Economist and Senior Vice President for Research and Economics, explained how the deteriorating economic and employment outlook is poised to create additional foreclosures going forward.
“Until recently, it was job and population losses that were the problems in states like Michigan and Ohio, whereas the problems in California and Florida were a combination of too many houses, speculation and weak underwriting. Economic fundamentals are now deteriorating in California and Florida. Over the past year, Florida led the nation in job losses at 156,200, with California losing 101,300, as compared with Michigan job losses at 71,200 and Ohio at 17,300.
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