The upward swing in delinquency and foreclosure rates that began in mid-2007 is still climbing and "still getting worse," according to Sam Khater, a senior economist at LoanPerformance CoreLogic. For alternative-A and subprime loans, "it is literally like a 45-degree angle going up," he told MortgageWire. LoanPerformance data show that 28% of subprime loans are 60 days or more past due or in foreclosure as of June 30, up from 15% in June 2007. Meanwhile, the percentage of alt-A loans 60 days or more past due hit 13.6% in June, up from 3.8% a year ago. "They are not going to plateau anytime soon irrespective of the loan modifications or repayment plans," Mr. Khater said.
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