NMN Survey: B&C Overdues Just Shy of 30%

Close to 30% of all subprime residential mortgages were delinquent or in foreclosure at midyear, according to exclusive survey figures compiled by National Mortgage News and the Quarterly Data Report. NMN found that 29.92% of all outstanding subprime loans were delinquent. (Included in the figure is a foreclosure rate of 10.86%.) The findings are based on surveys filed by nine different subprime servicers with a combined portfolio of 2 millions loans. The firm with the highest delinquency rate was Aurora Loan Services, Littleton, Colo. (40.66%). American Home Mortgage Servicing, Irving, Texas, had the lowest rate, 23.84%. Many of the nine firms are "scratch-and-dent" specialists that receive fee income from investors for handling their bad loans. NMN's subprime findings were close to those released by the Mortgage Bankers Association on Friday. The MBA found that 30.48% of subprime loans were delinquent, including 11.81% that were in foreclosure.