Provided below the three major FDIC asset types (‘Construction and land develeopment’, ‘1-4 family residential properties’, ‘Securred by nonfarm nonresidential properties’). ‘1-4 family residential properties’ is the largest percentage of assets currently past due. Development does have a large percentage in the ‘Assets in nonaccrual status’, no surprise there…
From the numbers below, it appears the 30-89 past due accounts on ‘1-4 family residentual properties’ have slightly reduced from the peak of 78.1 Bln to 75.0 Bln. The 90+ past due accounts for the same still rose slightly from 46.1 Bln to 57.0 Bln as compared to Q4-2007 at 14.3 Bln which was a massive jump for 2008. The ‘Assets in Nonaccrual Status’ (I assume are bank owned foreclosures) increased by 21.5 Bln this quarter alone. All last year, it increased by 19.1 Bln. The ‘Loan Charge-Offs’ have been still continuing to rise to the rate of 11.2 Bln this quarter alone. The foreclosures increase by 21.5 Bln this quarter leaving a possible 10.5 Bln in additional inventory. This may be the indicator the banks are holding on to foreclosures longer. Based on the Loan Charge-Offs, it doesn’t appear they are slowing the foreclosure process. This data represents all 8246 FDIC institutions across the nation. It still could be in local markets some hold backs are occuring.
It is interesting to note that of 2,719.6 Bln in ‘1-4 residential loans’ that 78.1 Bln or 2.87% of loans is in foreclosure. But like the stock market, the sales of only a small percentage of the shares drives the value of all the shares. Keep in mind, this is only data from FDIC institutions and not all real estate lending organizations.
