MBA: Overall Late Pays Better, Problem Areas Remain

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National Mortgage News 
March 1, 2010
Dymi, Amilda
Vol. 34, No. 22, P. 2

The Mortgage Bankers Association (MBA) reports an overall delinquency rate of 9.47 percent in the fourth quarter, a decline of 17 basis points from the third quarter. MBA chief economist Jay Brinkmann notes that option adjustable-rate mortgages represent the majority of modified and performing loans, quieting fears that rate resets would boost delinquency rates. The big problem now appears to be prime fixed-rate loans 90 days or more past due. While he believes the quarter-to-quarter drop in the overall delinquency rate may hint at recovery, Brinkmann says prime fixed-rate delinquencies remain a concern due to long-term unemployment -- which he notes is the highest since 1948. The trend is being led by Florida, where more than a quarter of all mortgages are at least 30 days late. Foreclosure starts also remain high in Arizona, California, and Nevada.
 

 

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