MBA says more prime loans facing trouble

Miami /
Nov.November 20, 2009 04:37 PM

Prime fixed-rate loans are accounting for 33 percent of foreclosures, as opposed to subprime loans, which had been the culprit at the beginning of the housing crisis, according to the most recent data from the Mortgage Bankers Association. Federal Housing Administration-backed loans also played a role, with the rate of foreclosures on FHA loans outpacing the rate at which the loans are being taken out, according to CNBC’s Diana Olick. This is typical for FHA loans, however, said Jay Brinkmann, chief economist with the Mortgage Bankers Association, because FHA loans often go to riskier borrowers. “Keep in mind that any time you have the economic downturn, the FHA is always affected more than the prime market,” said Brinkmann, adding that the crisis is extending beyond the usual suspects — Florida, Nevada, California and Arizona — which had seen the bulk of national foreclosures in the past. “In otherwise unaffected states, the unemployment is spreading and it’s impacting every place and foreclosure has become much more of a national issue than it was before.”


Related Articles

arrow_forward_ios
Developer Louis Birdman (One Thousand Museum, Getty)
One Thousand Museum developers score $90M refi to stave off foreclosure
One Thousand Museum developers score $90M refi to stave off foreclosure
A rendering of the the property at 3601 North Miami Avenue and HES Group CEO Francisco Arocha (Photos via HES, Francisco Arocha)
Midtown Miami Triptych dev site owner files for Chapter 11 amid foreclosure
Midtown Miami Triptych dev site owner files for Chapter 11 amid foreclosure
Simon and David Reuben with One Thousand Museum (Getty, iStock)
Reuben Brothers seeks to foreclose on Zaha Hadid-designed One Thousand Museum
Reuben Brothers seeks to foreclose on Zaha Hadid-designed One Thousand Museum
Clockwise: 310-318 Northwest 25th Street, Chaim Cahane, Jonathon Yormak and Jon Krasner 
Wynwood developer sells retail property in foreclosure for $12M
Wynwood developer sells retail property in foreclosure for $12M
Miami-Dade Mayor Daniella Levine Cava (Getty, iStock)
Miami-Dade resumes pre-pandemic evictions after unannounced February break
Miami-Dade resumes pre-pandemic evictions after unannounced February break
Westime owner Jean Simonian and Washington Park Hotel. (Facebook via Westime and Washington Park Hotel)
Ladder Capital sells Witkoff’s Miami Beach hotel for $44M
Ladder Capital sells Witkoff’s Miami Beach hotel for $44M
Southland Mall in Cutler Bay (Google Maps)
Lender takes control of struggling Southland Mall in Cutler Bay
Lender takes control of struggling Southland Mall in Cutler Bay
(The Tides South Beach via Facebook)
Chetrit’s Tides hotel on Ocean Drive faces $45M foreclosure lawsuit
Chetrit’s Tides hotel on Ocean Drive faces $45M foreclosure lawsuit
arrow_forward_ios

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

Loading...