Delinquencies and Foreclosures Increase in Latest Mortgage Bankers Association National Delinquency Survey
Not surprising, California, Florida, Nevada, and Arizona lead the list.
Palm Coast, FL – June 5, 2008 – The Mortgage Bankers Association (MBA) released their quarterly report on mortgage delinquencies and foreclosures today. Once again this quarter, the rate of foreclosure starts and the percent of loans in the process of foreclosure are the highest recorded since 1979.
“While the foreclosure start rates were up for all types of mortgages, a reflection of the decline in home prices, the magnitude of the national increases is clearly driven by certain loan types and certain states,” said Jay Brinkmann, MBA’s Vice President for Research and Economics. “ Out of the approximately 516,000 foreclosures started during the first quarter, subprime ARM loans accounted for about 195,000 and prime ARM loans 117,000, but the increase in prime ARM foreclosures exceeded subprime ARM foreclosures with increases of 29,000 and 20,000 respectively over the previous quarter.”
California, Florida, Arizona, and Nevada combined represent:
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62% of all foreclosures started on prime ARM loans, and 84% of the increase in prime ARM foreclosures
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49% of all of the subprime ARM foreclosures started in the country during the 1st quarter, and were responsible for 93% of the increase in subprime ARM foreclosures
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29% of prime fixed-rate foreclosures and 60% of the increase in those foreclosures
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25% of subprime fixed-rate foreclosures and 53% of the increase in those foreclosures
"About 20 states had drops in their number of foreclosures started, including Michigan, Ohio and Indiana where problems have been the most severe for the last several years," said Brinkmann.
The foreclosure start rate differed considerably by loan type. For example:
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Prime Fixed loans represent 65% of loans outstanding but only 19% of foreclosures started
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Prime ARM loans represent 15% of loans and 23% of foreclosures started
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Subprime Fixed loans represent 6% of loans and 11% of foreclosures started
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Subprime ARM loans represent only 6% of loans but 39% of foreclosures started
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