New Foreclosures Reach Record Level

The delinquency rate for single-family home loans jumped by 28 basis points to 5.12% in the second quarter of this year, and the number of loans entering the foreclosure process reached a record high, according to the Mortgage Bankers Association.The rate of loans entering the foreclosure process reached a record level of 0.65%, up 7 basis points from that of the previous quarter. The percentage of loans at some stage of the foreclosure process, at 1.40%, also was up substantially, though the foreclosure inventory was not a record. MBA chief economist Doug Duncan told reporters that delinquency and foreclosure rates were up substantially for subprime adjustable-rate mortgages. He also said that seven states -- Arizona, California, Florida, Indiana, Michigan, Nevada, and Ohio -- accounted for most of the deterioration in loan performance. The MBA can be found online at http://www.mortgagebankers.org.