Magazine article Mortgage Banking

MBA Reports Delinquency and Foreclosure Rates Hit Six-Year Lows

Magazine article Mortgage Banking

MBA Reports Delinquency and Foreclosure Rates Hit Six-Year Lows

Article excerpt

The Mortgage Bankers Association (MBA) released its fourth-quarter National Delinquency Survey (NDS) on Feb. 20, and the residential delinquency rate declined to a seasonally adjusted rate of 6.39 percent. That was the lowest level since the first quarter of 2008, the group said. The rate was down by 70 basis points from one year ago.

The serious delinquency rate--the rate of loans 90 days or more past due or in the process of foreclosure--hit 5.41 percent. That was a decrease of 137 basis points from the fourth quarter of 2012.

The percentage of loans on which foreclosure actions were started was 0.54 percent in the fourth quarter of 2013. That was the lowest level since 2006.

MBA Chief Economist Michael Fratantoni said, "The delinquency rate, at 6.39 percent, is more than 3 percentage points lower than its peak of over 10 percent in 2010 and is edging closer to the historical average of around 5 percent."

He added, "There was broad improvement in foreclosure rates in the fourth quarter, with 49 states and the District of Columbia recording a decrease. …

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