Jumbo Prime Loans Going Bad at a Rapid Rate

Mortgage problems are spreading to borrowers with good credit.

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A new report from Lender Processing Services shows that even borrowers with decent credit are getting into trouble. (The data is through January 31.)

From the report (via Housing Wire):

Foreclosure starts continue to increase across product types over the past several months in spite of moratoria and mitigation.

Non-Agency Jumbo Prime starts have increased almost 125% since January 2008, the most of any product…

Though it should be noted that delinquency rates remain relatively low in comparison, over the last 12 months the rate of deterioration in jumbo prime has exceeded all other product.