percent of all loans outstanding at the end of the third quarter, up from 9.24 percent in the second quarter and 6.99 percent a year ago, according to the MBA’s quarterly delinquency survey. That is the highest level of delinquencies since the survey began in 1972.
Also breaking a record was the percentage of loans in the foreclosure process: The percentage of loans in the foreclosure process at the end of the third quarter was 4.47 percent, up from 4.3 percent in the second quarter and 2.97 percent a year ago.
"Prime fixed-rate loans continue to represent the largest share of foreclosures started and the biggest driver of the increase in foreclosures,” he said.
Also continuing to deteriorate was the performance of prime adjustable-rate mortgages, including pay-option ARMs, he said. Meanwhile, foreclosures on subprime fixed-rate and subprime adjustable rate loans actually decreased.
The foreclosure rate of loans backed by the Federal Housing Administration also increased, even though there has been a large increase in the number of FHA loans outstanding, he said.
Four states continued to drive the national foreclosure rate up: Florida, California, Arizona and Nevada had 43 percent of all foreclosures started in the third quarter, down just slightly from 44 percent the previous quarter, according to the report.
The MBA survey covers about 44.5 million on one- to four- unit residential properties, representing about 85 percent of all first-lien residential mortgages outstanding in the country.
McClatchy-Tribune Information Services