The first-quarter mortgage metrics report released Wednesday by the Office of the Comptroller of the Currency and the Office of Thrift Supervision had all kinds of telling data. Among the most interesting was this finding:
Prime loans, which represented two-thirds of all mortgages in the portfolio, experienced the highest percentage increase in serious delinquencies, climbing by more than 20 percent from the prior quarter to 2.9 percent of prime mortgages.
The finding is another example of how the eroding labor market is playing a key role in driving mortgage delinquencies higher. And as the economy continues to shed jobs, additional borrowers with good credit will fall behind on their mortgage payments as well.