Mortgage Delinquency Rates Increase, But Foreclosure Inventory Rate Down Sharply

Julie C. Nichols General

Mortgage Bankers Association – Matt Robinson

The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 7.25 percent of all loans outstanding at the end of the first quarter of 2013, an increase of 16 basis points from the previous quarter, but down 15 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.

Non-seasonally adjusted delinquency rates typically decrease between the fourth and first quarters, and the delinquency rate decreased 76 basis points to 6.75 percent this quarter from 7.51 percent last quarter before accounting for the seasonal effect. On an unadjusted basis, the delinquency rate was 19 basis points lower compared to the first quarter of 2012 rate of 6.94 percent.

The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The percentage of loans on which foreclosure actions were started during the first quarter was unchanged at 0.70 percent, the lowest level since the second quarter of 2007, and was down 26 basis points from one year ago. The percentage of loans in the foreclosure process at the end of the first quarter was 3.55 percent, the lowest level since 2008, down 19 basis points from the fourth quarter and 84 basis points lower than one year ago.

>> Read More: http://mba.informz.net/MBA/archives/archive_2333161.html