Magazine article Mortgage Banking

Mortgage Delinquencies Fall, Foreclosure Inventory Rises. (Business Alert)

Magazine article Mortgage Banking

Mortgage Delinquencies Fall, Foreclosure Inventory Rises. (Business Alert)

Article excerpt

ACCORDING TO THE LATEST QUARTERLY National Delinquency Survey (NDS) conducted by the Mortgage Bankers Association of America (MBA), the share of homeowners paying their mortgages late decreased in fourth-quarter 2001, while the percentage of mortgages in the foreclosure process increased. The delinquency rate for loans on one- to four-unit residential properties was 4.65 percent in the fourth quarter, down 22 basis points from the third quarter of 2001. The percentage of loans in the process of foreclosure at the end of the quarter rose 9 basis points to 1.04 percent, while the percentage of loans in which foreclosure started during the quarter dropped 2 basis points to 0.36 percent.

The primary reason for the decrease in overall delinquency rates in fourth-quarter 2001 is that shorter-term delinquencies (loans 30 days past due) dropped back to second-quarter levels, according to MBA Chief Economist Douglas G. Duncan. The events of Sept. 11 may also have contributed to this temporary rise in short-term delinquencies.

The delinquency rate during the fourth quarter decreased for each of the three loan types. The rate for conventional loans was 3 percent, down 13 basis points from the previous quarter. …

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