Foreclosures Continue to Rise in Subprime
Compared with the first quarter of 2009, the non-seasonally adjusted seriously delinquent rate increased for all loan types in the second quarter, according to the MBA's National Delinquency Survey. The rate increased 74 basis points for prime loans (from 4.70% to 5.44%), 164 basis points for subprime loans (from 24.88% to 26.52 percent), 41 basis points for FHA loans (from 7.37% to 7.78%) and 27 basis points for VA loans (from 4.42% to 4.69%).
Compared with the Q2 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 non-seasonally adjusted foreclosure starts rate decreased 13 basis points for subprime loans. On a year-over-year basis, the seriously delinquent rate was 309 basis points higher for prime loans and 867 basis points higher for subprime loans.