Late Pays Flat, but Foreclosures Set Record

The overall delinquency rate on home loans stood at 4.52% in the first quarter, a 1-basis-point decline from that of the previous quarter, but the share of loans in foreclosure rose to 1.20%, an all-time survey high, according to the Mortgage Bankers Association of America.The foreclosure percentage represented a 2-bps increase from that of the previous quarter. Douglas Duncan, the MBA's chief economist, told reporters that the trade group is "watchful" of the situation, but he said he would not describe it as troubling. He said a gradual increase in the number of subprime-credit-quality loans that are included in the survey's loan sample may be contributing to the increase in the foreclosure total. The MBA also reported that 11.65% of Federal Housing Administration loans were at least 30 days late in the first quarter, an increase of 20 bps from the rate in the previous quarter. The MBA can be found online at http://www.mbaa.org.