Subprime Lending

Delinquencies, Defaults Continue Upward Run In 3rd Quarter 

A new report suggests a clear trend of increasing homeowner distress across key US housing markets. According to the MBA’s National Delinquency Survey, released today, the delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 4.67 percent of all loans outstanding in the third quarter of 2006 on a seasonally adjusted (SA) basis, up 28 basis points from the second quarter and up 23 basis points from one year ago. The increase was driven by increases in delinquencies for all major loan types, most notably for subprime and FHA loans. Delinquency rates for prime, subprime, and FHA loans all increased on a seasonally adjusted basis relative to the second quarter.