While the overall delinquency rate on home loans fell in the fourth quarter, the number of loans in foreclosure increased 5 basis points to 1.29% of outstanding loans, according to the quarterly delinquency survey compiled by the Mortgage Bankers Association.The number of loans entering the foreclosure process also rose slightly, by 1 bp, to 0.45% in the fourth quarter. The MBA reported that 4.49% of loans were 30 days or more past due in the fourth quarter, down 16 bps from the level recorded in the third quarter. The MBA, which has revised its database to reflect the growing number of subprime loans, said the overall delinquency rate is now at its lowest level since the second quarter of 2000, when the delinquency rate was 5.51%. MBA chief economist Doug Duncan said delinquency rates are "declining from their post-recession peaks" and that the housing market remains "fundamentally sound." The MBA can be found online at http://www.mortgagebankers.org.

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