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 October 01, 2007

Mortgage Delinquencies Continue to Rise
The number of home owners that are becoming delinquent on their mortgage payments is on the rise. The highest numbers are being seen from home owners that had credit scores and histories that were subprime when they first applied for their loans. The figures show that approximately 4.7% of home owners- nearly one in twenty were ate least 0 days behind on the payments during the 3rd quarter. This information was reported last week by the MBA (Mortgage Banker's Association) national survey of delinquencies. 42.6 active home mortgages were evaluated for the survey.
The survey showed that 1 out of 8 loans that were approved using subprime credit scores and histories were delinquent during the third quarter. Adding to the numbers were holders of adjustable-rate mortgages that had subprime scores and histories. Last quarter alone, 1 in every seven of these loans was delinquent.

Areas such as the industrial upper-Midwest have been hit hard economically had a far greater level of delinquent loans. In Michigan alone, a surprising 21.5% of subprime loans were delinquent while 1 in every ten was in foreclosure. In Ohio and Indiana 17.5% of holders of adjustable-rate mortgages were late with their payments- with more than 10% of them in the process of foreclosure.

Hurricane damaged Mississippi had a delinquency rate of 27.3% and the state of Louisiana had 24% rate of delinquency on subprime adjustable-rate mortgages.

Subprime loan holders were not the only ones to show an increase in delinquency. During the 3rd quarter there was an increase of 2.4% in late payments of prime borrower's loans. Prime borrowers are the applicants with the best credit. The western region of the country has the best on time performance for loan payments.

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