Daily News and Information for the Mortgage Loan Originator
More Homeowners Falling Behind On Mortgage Payments
Monday, December 18, 2006
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WASHINGTON, D.C.- The delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 4.67 percent of all loans outstanding in the third quarter of 2006 on a seasonally adjusted (SA) basis, up 28 basis points from the second quarter, and up 23 basis points from one year ago, according to MBA's National Delinquency Survey.
The increase was driven by increases in delinquencies for all major loan types, most notably for subprime and FHA loans. Delinquency rates for prime, subprime, and FHA loans increased on a seasonally adjusted basis relative to the second quarter.
The percentage of loans in the foreclosure process was 1.05 percent of all loans outstanding at the end of the third quarter, an increase of six basis points from the second quarter of 2006, while the SA rate of loans entering the foreclosure process was 0.46 percent, three basis points higher than the previous quarter. Compared with the third quarter of 2005, the percentage of loans in the foreclosure process was up eight basis points while the percentage of loans entering the foreclosure process was up five basis points. This quarter's NDS results cover over 42.6 million loans (32.6 million prime loans, 5.8 million subprime loans and 4.2 million government loans).
"The housing market continued to normalize in the third quarter of 2006. Although labor markets remain strong, the pace of job growth has slowed, as has the home price appreciation rate which has decreased in response to higher interest rates and rising inventories of unsold homes.Some states experienced home price declines in the third quarter, and a few have experienced declines over the past six months," said Doug Duncan, MBA's chief economist and senior vice president of research and business development.
Foreclosures Increase 17 Percent in Third Quarter, Up 43 Percent From 2005 According to a national foreclosure tracking service, foreclosures increased 17 percent in the third quarter of 2006, up 43 percent from 2005. Colorado, Nevada, and Florida posted the highest state wide rates for the second consecutive report.
Foreclosures Up 42% From One Year Earlier According to a national foreclosure tracking service, foreclosures increased 3 percent from the previous month and increased 42 percent one year earlier. Colorado, Nevada, and Georgia posted the highest foreclosure rates.
Foreclosures Increase 4% - Up 68% From One Year Earlier According to a national foreclosure tracking service, foreclosures increased 4 percent from the previous month and increased 68 percent one year earlier. Nevada surpassed Colorado for the highest foreclosure rate.
Group Says 2.2 Million Borrowers Face Foreclosure on Subprime Loans A new study by an industry watch group claims that 2.2 million American households will lose their homes and as much as $164 billion due to foreclosures in the subprime mortgage market. The group goes on to claim that one in every five subprime loans outstanding will result in a foreclosure.
$1 Trillion in Adjustables Face a 25% Increase in Payments This Year Economist John Tuccillo, the former chief economist for the National Association of Realtors recently addressed the Wisconsin Bankers Association and said that over $1 trillion of adjustable mortgages will reset to higher rates in 2007 and stated that those who do not refinance could see payments increase by 25 percent. Tuccillo also warned that how these homeowners cope with the payment increase could trickle through the economy.
More Than 1.2 Million Foreclosures Reported in 2006 According to a national foreclosure tracking service more than 1.2 million foreclosure filings were reported nationwide during the year, up 42 percent from 2005 and a foreclosure rate of one foreclosure filing for every 92 U.S. households.
Subprime Help on the Way, Dodd Responds Senator Chris Dodd, Chairman of the Senate Banking Committee, responded to Treasury Secretary Henry Paulson's statement that the Treasury Department would soon announce a plan to modify and refinance loans for certain subprime mortgage borrowers.
