Mortgage delinquencies hit record-breaking levels again, MBA data shows

Delinquencies on residential loans hit record-breaking levels in the third quarter this year, according to the Mortgage Bankers Association. The delinquency for mortgages on U.S. residential properties with one-to-four units hit 9.64 percent in the quarter, according to the MBA’s seasonally adjusted data, released today. The figure is 265 basis points up from the same time period last year and up 40 points from the second quarter this year. The record had been set last quarter, when the delinquency rate was at 8.86 percent, but MBA experts said that prime and FHA loans, coupled with continued job losses nationwide, spurred delinquencies. “Despite the recession ending in mid-summer, the decline in mortgage performance continues,” Jay Brinkmann, chief economist with MBA, said. “Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point increases in GDP.” TRD