By: Dennis Norman
- Dennis Norman
This past week the Office of the Comptroller of the Currency and the Office of Thrift Supervision issued a joint report on mortgage performance for 4th quarter 2008. The report shows the percentage of performing mortgages for the 4th quarter of 2008 had dropped to 89.95% down from 93.33% at the end of the first quarter.
Not surprisingly sub-prime loans had the highest level of seriously delinquent loans at 16.4%, up over 50% from 10.75% at the end of first quarter. Alt-A loans that were seriously delinquent increased over 75% during the same period from 5.18% to 9.10%.
What is surprising is the 116% increase in seriously delinquent prime mortgages (the best borrowers and lowest risk loan category) from 1.11% at the end of the 1st quarter of 2008 to 2.40% at the end of the 4th quarter of 2008. Clearly the struggling economy, increased unemployment and 2 year old real estate slump is taking its toll even on those that have the best credit and history of paying their bills.
The report is 39 page long and contains a lot of interesting and informative information about the success of modified loans for struggling borrowers which I may write about after read more thoroughly.
Related Posts
- Mortgage delinquencies set new record in third quarter
- Florida predicted to have highest mortgage delinquency rate next year
- Mortgage delinquencies reach record levels; Is this the next bubble to burst?
- Number of metro areas with declining home prices drops to 199 for first quarter 2009, down from 312 in 4th quarter 2008
- Foreclosures in third quarter 2009 increase 23 percent from a year ago
Most Commented on Posts