U.S. Foreclosures, Mortgage Delinquency Rates Down Sharply in 2012. According to the Mortgage Bankers Association’s (MBA) recently released National Delinquency Survey, delinquency rate for mortgage loans on one-to-four-unit residential properties in the U.S. fell to a seasonally adjusted rate of 7.09 percent of all loans outstanding at the end of the fourth quarter of 2012, the lowest level since 2008, a decrease of 31 basis points from the previous quarter, and down 49 basis points from one year ago.
While delinquency rates typically increase between the third and fourth quarters of the year, even the non-seasonally adjusted delinquency rate dropped 13 basis points to 7.51 percent this quarter from 7.64 percent last quarter.
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 fourth quarter was 0.70 percent, the lowest level since the second quarter of 2007, down 20 basis points from last quarter and down 29 basis points from one year ago. The percentage of loans in the foreclosure process at the end of the fourth quarter was 3.74 percent, the lowest level since the fourth quarter of 2008, down 33 basis points from the third quarter and 64 basis points lower than one year ago.
The serious delinquency rate, the percentage of loans 90 days or more past due or in the process of foreclosure, was 6.78 percent, a decrease of 25 basis points from last quarter, and a decrease of 95 basis points from the fourth quarter of 2011.
The combined percentage of loans at least one payment past due or in foreclosure was 11.25 percent on a non-seasonally adjusted basis, a 46 basis point decrease from last quarter and a 128 basis points decrease from the same quarter one year ago.
By Michael Gerrity, World Property Channel on February 25, 2013 9:51 AM
Click here to see the full U.S. Foreclosures, Mortgage Delinquency Rates Down Sharply in 2012 article.