March 27, 2010 at 5:28 PM #17276ArrayaParticipant
NEW YORK (Reuters) – Delinquencies on mortgages rose to nearly 14 percent in late 2009, led by a sharp increase in seriously overdue home loans held by the most credit-worthy borrowers, U.S. banking regulators said on Thursday.
The percentage of current and performing mortgages fell to 86.4 percent at the end of the fourth quarter of 2009, down 0.9 percent from the previous three months, marking a decline for the seventh consecutive quarter, the report by the Office of the Comptroller of the Currency and the Office of Thrift Supervision said.
It was also down 3.9 percent from a year earlier.
The decline was attributable to a 21.1 percent jump in mortgages 90 or more days past due, to 4.7 percent of all mortgages in the portfolio at the end of 2009.
The increase in seriously delinquent mortgages was most pronounced among prime borrowers, with an increase of 16.5 percent in seriously delinquent mortgages during the fourth quarter.
The jump in seriously delinquent mortgages is likely to lead to a rise in foreclosure actions, the report said.
So-called prime mortgages are granted to the most credit-worthy borrowers, a sector that initially raised few worries when the housing bubble burst.March 28, 2010 at 2:53 PM #532640March 28, 2010 at 2:53 PM #532767March 28, 2010 at 2:53 PM #533218March 28, 2010 at 2:53 PM #533315March 28, 2010 at 2:53 PM #533574
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