Mortgage payments: Record number are late

Discussion in 'Economics' started by ByLoSellHi, Nov 19, 2009.


    Mortgage payments: Record number are late

    Efforts to combat foreclosure plague are falling short as the total number of delinquent mortgage loans hits 9.64%.

    By Les Christie, staff writer
    Last Updated: November 19, 2009: 10:59 AM ET

    NEW YORK ( --
    Mortgage borrowers are still falling behind on their payments in record numbers, despite the many foreclosure prevention efforts initiated by the government and nonprofts.

    In the third quarter, 9.64% of all mortgage loans were delinquent, according to a report released Thursday by Mortgage Bankers Association. That represents 4.5 million borrowers and is an increase from 9.24% in the prior three months.

    "Despite the recession ending in mid-summer, the decline in mortgage performance continues," said Jay Brinkmann, MBA's chief economist. "Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point increases in GDP."

    The delinquency rate includes all loans at least one payment past due but does not include loans in some stage of foreclosure.

    The combined percentage of loans in foreclosure or at least one payment past due was 14.41% non-seasonally adjusted, the highest ever recorded in the MBA delinquency survey. To top of page