Thursday, February 04, 2010

Mortgages Getting Ugly

Not very good news.

Home-loan delinquency rates in the US reached 10% in December, up from the record-high 9.97% in November, according to Lender Processing Services (LPS: 39.93 0.00%), which provides data on mortgage performance.

Accounting for foreclosures in the pipeline, the total non-current rate stands at 13.3%, according to the data in the LPS database. When extrapolated for the entire mortgage industry, 7.2m mortgage loans are behind on their payments.

By the way, this is not just sub-prime borrowers living hand-to-mouth in Detroit...

Earlier in January, Fitch Ratings reported the delinquency rate among prime jumbo residential mortgage-backed securities (RMBS) almost tripled to 9.2% in December 2009.

Worse is the "jingle-mail" trend--mailing the keys to the bank and walking away.

HT: Calculated Risk

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