MBA Delinquency & Foreclosure's Hit All Time Highs
MBA's National Delinquency Survey... U.S. mortgage foreclosures rose to an all-time high at the end of 2007
as borrowers with adjustable-rate loans walked away from properties before their payments increased.
The total delinquency rate is the highest in the MBA survey since 1985.
The rate of foreclosure starts and the percent of loans in the process of foreclosure are at the highest levels ever.
Jay Brinkmann, MBA vice president of research and economics:
"We're seeing people give up even before they get to the reset because they couldn't afford the home in the first place."
The delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 5.82% of all loans outstanding in Q4 of 2007.
up 23 basis points from Q3 2007, and up 87 basis points from one year ago, the delinquency rate does not include loans in the process of foreclosure.
The percentage of loans in the foreclosure process was 2.04% of all loans outstanding at the end of Q4,
an increase of 35 basis points from Q3 2007 and 85 basis points from one year ago.
Prime ARMS & Fixed account for 80% of all loans and 38% of all foreclosures. Subprime ARMS & Fixed account for 13% of all loans and 54% of all foreclosures.
California and Florida continue to represent a disproportionate share of the foreclosure starts in the country.
Those two states represent 21% of all loans outstanding, but accounted for 30% of foreclosure starts in the US.
More importantly, they accounted for 39% of all prime ARMs outstanding, but 47% of prime ARM foreclosure starts.
Similarly, they represented 29% of all subprime ARMs, but 36% of subprime ARM foreclosure starts.
Between Q406 and Q407: The rate of foreclosure starts in Florida more than tripled while the rate in California more than doubled.
Doug Duncan, MBA's Chief Economist:
"In states like Ohio and Michigan, declines in the demand for homes due to job losses and out-migration have left those looking to sell the homes
with fewer potential buyers, particularly with the much tighter credit restrictions borrowers now face.
In states like California, Florida, Nevada and Arizona, overbuilding of new homes created a surplus that will take some time to work through."
The Nattering One muses... wonder what happens to the prices in these overbuilt states when they get hit with the service sector job losses?
Just sit back and watch, unless you have vertigo.
as borrowers with adjustable-rate loans walked away from properties before their payments increased.
The total delinquency rate is the highest in the MBA survey since 1985.
The rate of foreclosure starts and the percent of loans in the process of foreclosure are at the highest levels ever.
Jay Brinkmann, MBA vice president of research and economics:
"We're seeing people give up even before they get to the reset because they couldn't afford the home in the first place."
The delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 5.82% of all loans outstanding in Q4 of 2007.
up 23 basis points from Q3 2007, and up 87 basis points from one year ago, the delinquency rate does not include loans in the process of foreclosure.
The percentage of loans in the foreclosure process was 2.04% of all loans outstanding at the end of Q4,
an increase of 35 basis points from Q3 2007 and 85 basis points from one year ago.
Prime ARMS & Fixed account for 80% of all loans and 38% of all foreclosures. Subprime ARMS & Fixed account for 13% of all loans and 54% of all foreclosures.
California and Florida continue to represent a disproportionate share of the foreclosure starts in the country.
Those two states represent 21% of all loans outstanding, but accounted for 30% of foreclosure starts in the US.
More importantly, they accounted for 39% of all prime ARMs outstanding, but 47% of prime ARM foreclosure starts.
Similarly, they represented 29% of all subprime ARMs, but 36% of subprime ARM foreclosure starts.
Between Q406 and Q407: The rate of foreclosure starts in Florida more than tripled while the rate in California more than doubled.
Doug Duncan, MBA's Chief Economist:
"In states like Ohio and Michigan, declines in the demand for homes due to job losses and out-migration have left those looking to sell the homes
with fewer potential buyers, particularly with the much tighter credit restrictions borrowers now face.
In states like California, Florida, Nevada and Arizona, overbuilding of new homes created a surplus that will take some time to work through."
The Nattering One muses... wonder what happens to the prices in these overbuilt states when they get hit with the service sector job losses?
Just sit back and watch, unless you have vertigo.
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