Foreclosure starts reach record high, MBA finds

New York /
May.May 28, 2009 11:50 AM

A record number of foreclosure actions were initiated in the first quarter of 2009, according to a nationwide survey released today by the Mortgage Bankers Association.

Foreclosure actions were initiated on 1.37 percent of first mortgages, according to the MBA’s National Delinquency Survey, an increase of 36 basis points from the same period last year and 29 basis points from the fourth quarter of 2008.

The seasonally adjusted delinquency rate for mortgage loans for one-to-four-unit residential properties was 9.12 percent at the end of the first quarter of 2009, up 277 basis points from one year ago — the highest rate the MBA has measured since 1972, when the association first started keeping records.

Most of the foreclosures are concentrated in Florida, California, Arizona and Nevada, the survey found, with those states accounting for 46 percent of the country’s foreclosure starts.

MBA Chief Economist Jay Brinkmann attributed the record-setting increases in part to the recent lifting of temporary Fannie Mae and Freddie Mac bans on foreclosure.

Moreover, the figures also represent a shift in delinquencies from subprime loans to traditional prime, fixed-rate loans as a result of the recession and unemployment, he said. The foreclosure rate on prime fixed-rate loans has doubled in the past year and those loans now represent the largest share of new foreclosures.

Because the unemployment rate is not expected to hit its peak until mid-2010, it’s unlikely that the level of mortgage defaults will begin to fall until then, the report says. TRD


Related Articles

arrow_forward_ios
Millions of homeowners remain vulnerable as forbearance winds down
Millions of homeowners remain vulnerable as forbearance winds down
Millions of homeowners remain vulnerable as forbearance winds down
Vanbarton Group's Gary M. Tischler and Richard Coles with 17 John Street (Google Maps)
Vanbarton forecloses on Prodigy’s FiDi co-working property
Vanbarton forecloses on Prodigy’s FiDi co-working property
Ron Burkle and Andrew Zobler with The NoMad New York. (Google Maps, Getty)
NoMad Hotel heads back to the auction block
NoMad Hotel heads back to the auction block
Maverick Real Estate Partners principal David Aviram and the buildings to be sold. (Rosewood Realty Group)
Part of Chaskiel Strulovitch’s Brooklyn portfolio to be sold at auction
Part of Chaskiel Strulovitch’s Brooklyn portfolio to be sold at auction
Sen. Brian Kavanagh (Getty, iStock)
New York votes to extend eviction ban through August
New York votes to extend eviction ban through August
Avishai Abrahami with Ziel Feldman and Nir Meir, and 500 Bailey Ave, Buffalo, NY; 707 Spence Lane, Nashville, TN; 1100 Milwaukee Avenue, South Milwaukee, WI (Getty, Google Maps, NY Supreme Court)
Ziel Feldman, Nir Meir accused of fraud over $30M loan
Ziel Feldman, Nir Meir accused of fraud over $30M loan
Refinances made up 60 percent of all applications, up slightly from 59.2 percent the previous week. (iStock)
Mortgage rates dip, triggering surge in loan requests
Mortgage rates dip, triggering surge in loan requests
Philip Falcone and his homes at 142 Crestview Lane in Sagaponack and 22 East 67th Street (Getty, Corcoran, Google Maps)
Phil Falcone files appeal halting foreclosure of UES, Hamptons homes
Phil Falcone files appeal halting foreclosure of UES, Hamptons homes
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...