Higher delinquency rates on home mortgages in the second quarter could adversely effect collateral backing residential mortgage-backed securities, Standard & Poor’s said Wednesday. S&P says delinquencies on residential mortgage loans rose in the past two quarters after showing signs of improvement during three consecutive quarters last year. In quarter two, the total delinquency rate on one-to-four unit residential properties rose to 8.44% of all loans outstanding, up from 8.32% in the first quarter and down 9.85% from 2Q 2010, S&P said. The Mortgage Bankers Association noted a similar trend earlier in the week, reporting a quarter-over-quarter increase in mortgage delinquencies during the first two periods of 2011. MBA recorded an 8.44% delinquency rate for mortgages backing one-to-four family properties in the second quarter. That is up 12 basis points from the first quarter, but down 141 basis points from the year-ago quarter. Meanwhile, foreclosure activity fell in the first part of the year, with the percentage of foreclosure starts on all loans hitting 0.96% in 2Q, down 12 basis points from the first quarter and 15 points from a year ago. Write to: Kerri Panchuk.
Increased mortgage delinquencies could adversely affect RMBS: S&P
Most Popular Articles
Latest Articles
Reverse mortgages seen as a path forward for lenders
Leaders at Guild Mortgage and Guaranteed Rate explained some of their approaches to the reverse mortgage business during The Gathering.
-
Blend receives $150M infusion from Haveli Investments
-
Michigan attorney general reissues reverse mortgage consumer alert
-
eXp Realty makes changes to its executive team
-
Housing affordability dipped in March: First American
-
Title insurance executives are confident the Biden proposals won’t come to much