MBA: More Record Delinquencies and Foreclosures

Even though the recession ended some time this summer, late payments and foreclosures on residential loans continued on an upward course in the third quarter with delinquencies reaching a record 9.64% — a 40% spike from a year ago. According to the Mortgage Bankers Association's National Delinquency Survey, no loan type was spared: delinquencies on prime and subprime mortgages as well as FHA loans all rose during the quarter, reaching new highs. According to figures compiled by National Mortgage News, consumers owe $9.8 trillion on their homes, which means (based on the MBA's late payment rate) that $944.7 billion in mortgages are 30- 60-, or 90 days late or in foreclosure. Roughly $238 billion in subprime mortgages are delinquent as well. The national foreclosure rate rose to 4.47% at the end of September, a record, and a 50% jump from a year ago. The MBA reports delinquencies separate from foreclosures which means 14.11% of all home owners with a mortgage are either in arrears or in some stage of being foreclosed on. Given the national unemployment rate of 10.2%, MBA's findings were not unexpected.