Prime Mortgage Delinquencies Move Up
The Office of the Comptroller of the Currency published 4th quarter data for loan delinquencies late last week.
From the report’s executive summary: “The biggest percentage jump was in prime mortgages, which is the lowest risk loan category and accounts for approximately two-thirds of all mortgages in the overall portfolio. The percentage of seriously delinquent prime mortgages increased from the very low starting rate at the end of the first quarter of 1.11 percent to 2.40 percent at the end of the fourth quarter—an increase of over 115 percent—with a significant rise from the third to the fourth quarter.”
Prime delinquencies always go up with unemployment. Add in the fact many are underwater or have little equity to protect and you have an additional reason to walk away from a loan. This is the second shoe to drop from the sub-prime/alt-a issue! San Diego real estate
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In 2004, Republicans held an oversight hearing on Freddie Mae and Fannie Mac. They warned us about this crisis back then, but Barney Frank, Maxine Waters, and other Democrats charged racism. Franklin Raines, the disgraced thief Democrat CEO of Fannie Mae, insisted the loans were “riskless”.” There’s plenty of video out there on this showing this fact.
San Diego real estate agents
One big reason loans will continue to default in mass is that no one can afford to sell their home. In my area condos sold for $430,000 to $490,000 are now being sold in foreclosure between $199,000 and $235,000!
Hoodia Diets