UPDATE: MBA:Subprime ARM Delinquencies Up To 14.44% In 4Q '06
Tue, Mar 13 2007, 16:43 GMT http://www.djnewswires.com/eu
UPDATE: MBA:Subprime ARM Delinquencies Up To 14.44% In 4Q '06 (Adds information
about record new foreclosure rate) By Damian Paletta Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--Delinquency rates for subprime adjustable rate mortgages
reached 14.44% in the fourth quarter, jumping 122 basis points in three months, the Mortgage
Bankers Association said Tuesday. It also said the "new foreclosure rate" during the fourth
quarter, 0.54%, was the highest level ever recorded by its 37-year-old National Delinquency
Survey. New foreclosures are foreclosures that began during the quarter. The previous record
was 0.50% in the second quarter of 2002. Overall, delinquencies on one-to-four family homes
jumped 28 basis points in the fourth quarter to 4.95%, according to the trade group. "Subprime
borrowers are more likely to be susceptible to the cumulative increases in interest rates that we
have experienced and the resultant nationwide slowing of home price appreciation including
outright declines in some markets," MBA chief economist Doug Duncan said. MBA reported that
4.53% of the 5.97 million subprime loans in its survey were in foreclosure at the end of the
fourth quarter, up from 3.86% that were in foreclosure as of the end of the third quarter.
Foreclosure inventory rates were much lower for prime loans. Just 0.50% of the 33.32 million
prime loans in its survey were in foreclosure, up from 0.44% at the end of the third quarter.
Duncan said he expected delinquency foreclosure rates to level off towards the end of this year
"as the housing market regains its footing." The states with the highest overall delinquency
rates were Mississippi at 10.64%, Louisiana with 9.10%, and Michigan with 7.87%. -By Damian
Paletta, Dow Jones Newswires; 202-862-9241; Damian.Paletta@dowjones.com (END) Dow
Jones Newswires March 13, 2007 12:43 ET (16:43 GMT)
Tuesday, June 19, 2007
Subscribe to:
Posts (Atom)
