Mortgage Bankers Association Reports Record Foreclosures
With delinquencies on payments rising, the Mortgage Bankers Association’s (MBA) report “Delinquencies Increase, Foreclosure Starts Flat in Latest MBA National Delinquency Survey” announced the highest level of delinquencies and foreclosures in the organization’s history of recording those statistics. Here’s what Jay Brinkmann, MBA’s Chief Economist and Senior Vice President for Research and Economics had to say: “While 20 states showed declines in the rate of foreclosure starts between the second and third quarters, every state showed an increase in the 90 days or more delinquent category with the exception of Alaska and all of the increases were greater than what we would expect due to normal seasonal factors.”
States hit hardest by foreclosures include: Nevada, Florida, Arizona, California, Michigan, Rhode Island, Illinois, Indiana, and Ohio. Florida and California’s markets in particular hold the lion’s share of prime and sub-prime adjustable rate mortgages (ARMs) that are going in to foreclosure. The MBA report suggests that until those two markets stabilize the rest of the markets will continue to be unstable.
Concerns about continued foreclosures remain high as job losses further weaken the economy. California lost over 100,000 jobs in this past year according to MBA. Many people will have to return to renting in the wake of foreclosure. It will be interesting to watch how the rental market adjusts and absorbs former homeowners.
