U.S. mortgage delinquencies to drop: report

Mortgage delinquencies across the country are expected to decline significantly in 2011 as the economy continues to stabilize, according to a new forecast on consumer credit from TransUnion. The report shows that national mortgage loan delinquencies — the number of borrowers 60 or more days past due — will drop close to 20 percent by the end of 2011 to 4.98 percent, from an expected 6.21 percent at the end of 2010. The projected decrease in 60-day mortgage delinquencies would more than double the 9.87 percent yearly decline that is expected between the end of 2009 and 2010, from 6.89 percent to 6.21 percent. TransUnion is also predicting double-digit declines in mortgage delinquencies for every state through 2011. “[The decline] will be driven by a slowly improving unemployment picture and continued stabilization in housing prices,” said Steve Chaouki, a vice president in TransUnion’s financial services business unit. “While there is continued price pressure in many markets, we expect a growing number of areas of the country to experience a rise in property values along with some stabilization of values in those states and markets hardest hit by the recession.” TRD