Core Systems

05:52 PM
Connect Directly

A Record 12 Percent of Mortgage Holders in Arrears

Mortgage Bankers Association stats show 3.3 percent of those were in foreclosure at the end of 2008.

Almost 12 percent of all U.S. homeowners were behind in their mortgage payments or in foreclosure at the end of 2008, according to figures released today by the Mortgage Bankers Association.

Both are record highs since the MBA began tracking these measures in its National Delinquency Survey back in 1972.

The percentage of loans actually in the foreclosure process at the end of the fourth quarter was 3.30 percent, up one third from the previous quarter. Loans dubbed "delinquent" are at least one payment past due but does not include loans somewhere in the process of foreclosure.

"Foreclosure inventory jumped sharply in the fourth quarter even though the rate at which loans were entering foreclosure remained unchanged," said Jay Brinkmann, MBA's Chief Economist and Senior Vice President for Research and Economics. "This is mainly attributable to variousmoratoria on foreclosure sales," he added in a statement.

"Subprime ARM loans and prime ARM loans, which include Alt-A and pay-option ARMs, continue to dominate the delinquency numbers," Brinkmann said.

"While California, Florida, Nevada, Arizona and Michigan continue to dominate the delinquency numbers, some of the sharpest increases we saw last quarter in loans 90 days or more delinquent were in Louisiana, New York, Georgia, Texas and Mississippi, signs of the spreading impact of the recession," he said.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology
BS&T's 2014 Elite 8 executives are leading their banks to success, whether it involves leveraging the cloud, modernizing core systems, or transforming into digital enterprises.
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.