Distressed Loans back to 2007 Level

The Mortgage Bankers Associations National DelinquencyrnSurvey provides another measure of the declining rate of distress inrnresidential mortgages.  The secondrnquarter report shows the delinquency rate for mortgages on one-to-four unitrnproperties at the lowest level since the second quarter of 2007, 5.30rnpercent.  This is a drop of 24 basisrnpoints (bps) from the first quarter of 2015 and 74 bps from the second quarterrnof 2014.</p

MBA measures delinquency based on loans that are 30 or morerndays past due but not yet in the foreclosure process.  The percentage of loans in foreclosure duringrnthe quarter was 2.09, down 13 bps quarter-over-quarter and 40 from a year earlier.  This was also the lowest rate since 2007, inrnthis case the fourth quarter of that year.</p

Serious delinquencies, those more than 90 days past due orrnin the process of foreclosure, fell 29 bps to 3.95 percent, the lowest raternsince the fourth quarter of 2007, and 85 bps compared to the second quarter ofrn2014.</p

The foreclosure start rate was 0.40 percent, unchanged fromrna year earlier but down 5 basis points from the prior quarter.</p

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