The combined percentage of loans in foreclosure or at least one payment past due rose slightly in the second quarter compared to the first but was 143 basis points lower than a year ago, according to the Mortgage Bankers Association’s National Delinquency Survey. The quarterly increase was due to a rise in loans one payment past due. Jay Brinkmann, MBA’s chief economist, said, though overall mortgage delinquencies were up during the second quarter, there’s been a continued decline in long-term delinquencies and both foreclosure starts and inventory rates are down. According to Brinkmann, the numbers don’t support the idea that there’s a growing backlog of loans being held back from foreclosure. If the drop in foreclosure rates were only temporary, the percentage of loans 90-days or more delinquent would be increasing rather than decreasing. More here.
