Mortgage Delinquencies Still High at 6.67% in Q2: TransUnion

MortgagesMortgage delinquencies – borrowers 60 or more days past due – posted a 14.8 percent increase in the second quarter of 2010 compared to the same quarter last year, according to credit reporting bureau TransUnion.
The national mortgage delinquency rate was 6.67 percent — a level marginally lower than the 6.77 percent rate reported for the first quarter of this year, TransUnion said.
But shifts in so-called “later-stage” delinquency measures – late payments of 90 days or more – were encouraging, particularly since those rates portend foreclosures.
Sixty-four percent of all metro areas in TransUnion’s review showed a decrease in their 90-day mortgage delinquencies, compared to 45 percent from the previous period. Moreover, the percentage of metro areas showing a decline in their 120-day delinquency ratio almost doubled from the previous quarter levels.
“TransUnion believes that the 60-day mortgage delinquency rate will likely continue to drift downward in 2010, possibly nearing 6.4 percent nationally by the end of the year,” said FJ Guarrera, vice president in TransUnion’s financial services business unit. “Note that this forecast is based on various economic assumptions, including the assumption that both real estate values and the unemployment picture will improve gradually.”
The average national mortgage debt per borrower decreased 0.77 percent in the second quarter to $191,284 from the previous quarter’s $192,774. On a year-over-year basis, the second quarter 2010 average represents a 1.3 percent decrease over the second quarter 2009 average mortgage debt per borrower of $193,811.
Mortgage delinquency rates in the second quarter continued to be highest in Nevada (15.86 percent) and Florida (15.02 percent). The lowest delinquency rates were found in North Dakota (1.61 percent), South Dakota (2.23 percent) and Nebraska (2.61 percent).

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