Mortgages: Foreclosure Rates Continue To Soar
August 21st, 2009 By Peter G. Miller
Mortgage delinquencies for the second quarter were at the highest level since it first began keeping records in 1972, according to the Mortgage Bankers Association.
Glum news on the foreclosure front continues. The latest MBA statistics offer the following highlights.
- The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.24 percent of all loans outstanding as of the end of the second quarter of 2009, up 2.83 percent from last year ago.
- The states of California, Florida, Arizona and Nevada represented 44 percent of all of new foreclosures during the second quarter of this year.
- Compared with the second quarter of 2008, the percentage of loans in the process of foreclosure increased 158 basis points for prime loans and 324 basis points for subprime loans. The rate increased 74 basis points for FHA loans and 74 basis points for VA loans.
- The seasonally adjusted delinquency rate increased to 6.41 percent for prime loans while a whopping 25.35 of all subprime loans were late. Among FHA borrowers, 14.42 percent were late while VA borrowers saw their delinquency rate dip from 8.21 percent to 8.06 percent during the past year.
- The percentage of loans in the foreclosure process reached 3.00 percent for prime loans and an amazing 15.05 percent for subprime financing. The rate for both FHA loans (2.98 percent) and VA loans (2.07 percent) was lower than the rate for prime mortgages.
These numbers, of course, demonstrate that foreclosure problems not only remained, they actually grew during the second quarter. With a rising unemployment rate, the failure of many loan modifications and the end to a number of mortgage moratoriums it’s difficult to see how the third quarter will be any better.
The maps below, courtesy of the Mortgage Bankers Association, show how foreclosure and delinquency figures look when mapped.
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