Mortgage Delinquencies…..
by Tom on March 5, 2009
in Market Musings, banks
This isn’t going to help Fannie and Freddie stem the losses any time soon and it’s going to do a couple of other things:
- It’s going to put upward pressure on interest rates because investor appetite for mortgage backed securities is going to be lower.
- It’s going to put ongoing pressure on tightening of mortgage guidelines to attempt to improve portfolio performance
- It’s going to increase the political calls for “foreclosure” prevention initiatives.
Stay tuned,
Tom Vanderwell
MBA: Delinquencies Hit Record 7.88% in Q4 : HousingWire || financial news for the mortgage market
Mortgage delinquencies piled up at record pace in the fourth quarter of 2008, hitting an all-time, seasonally-adjusted high of 7.88 percent of loans outstanding, the Mortgage Bankers Association said Thursday.The delinquency rate, which includes loans that are at least one payment past due but not yet in foreclosure, was up from 6.99 percent in the third quarter and 5.82 percent a year ago. The volume of loans in the foreclosure stage jumped 3.30 percent, also reaching a new record high, according to the MBA’s report.
