Delinquencies, Foreclosures Hit Record Highs

The number of loans entering foreclosure and in foreclosure, in addition to the number of loans more than 30 days delinquent, all reached record highs in the first quarter, according to the Mortgage Bankers Association. The MBA's quarterly delinquency survey showed that overall, 8.82% of loans were at least 30 days past due or in foreclosure during the first quarter. When the foreclosure inventory of 2.47% is considered separately, 6.35% of loans were at least 30 days past due. The foreclosure inventory rose 43 basis points from the level of the fourth quarter of 2007 and 119 bps from that of one year earlier. That means the number of loans in foreclosure is nearly double what it was a year earlier. Loans entered foreclosure at a 0.99% rate in the first quarter. Jay Brinkmann, the MBA's vice president for research and economics, said the deterioration in credit quality was largely driven by certain loan products in certain states. Specifically, subprime adjustable-rate mortgage loans, which accounted for 39% of foreclosures started in the first quarter, helped push up foreclosure and delinquency rates. Two states, California and Florida, also continued to drive up national delinquency and default figures, Mr. Brinkmann said. The MBA can be found online at http://www.mortgagebankers.org.