Serious US Mortgage Delinquencies More than Double Since Last Year
This morning, the Office of the Comptroller of the Currency and the Office of Thrift Supervision released the latest sobering stats on US mortgages:
[T]he percentage of current and performing mortgages dropped for the sixth consecutive quarter to 87 percent of the servicing portfolio, serious delinquencies rose to 6.2 percent, and foreclosures in process surpassed 1 million mortgages, or about 3.2 percent of the servicing portfolio. Of particular note was the deterioration among prime mortgages, the largest category of mortgages. Serious delinquencies at the end of the third quarter increased to 3.6 percent of prime mortgages, up almost 20 percent from the previous quarter and more than double a year ago.
On a brighter note, the government has initiated “680,000 home loan modifications and payment plans in the third quarter of 2009 to avoid preventable foreclosures.”
2010 is going to be incredibly interesting as the US housing crisis continues to play out amidst a jobless economic stabilization.
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