Uh-Oh: Home-Loan Delinquencies Double on Least-Risky Mortgages, U.S. Report Says

[marmar]

Delinquencies Double on Least-Risky Mortgages, U.S. Report Says
By Margaret Chadbourn


June 30 (Bloomberg) -- Delinquency rates on the least risky mortgages more than doubled in the first quarter from a year earlier as U.S. efforts to help homeowners failed to keep pace with job losses that pushed more borrowers toward foreclosure.

Prime mortgages 60 days or more past due climbed to 2.9 percent of such loans through March 31 from 1.1 percent at the same point in 2008, the Office of the Comptroller of the Currency and the Office of Thrift Supervision said today in a report. First-time foreclosure filings on the loans rose 22 percent from the fourth quarter, the report said.

“I’m very concerned about the rise in delinquent mortgages and foreclosure actions,” Comptroller of the Currency John Dugan said in a statement released with the quarterly report. President Barack Obama’s plan to create “sustainable, payment- reducing modifications is a positive step that should show significant benefits in the coming months,” Dugan said.

Obama’s program, unveiled Feb. 18, aims to help as many as 4 million borrowers by modifying loans and calls for Fannie Mae and Freddie Mac to refinance mortgages for as many as 5 million borrowers who owe more than their homes are worth. Foreclosure filings surpassed 300,000 for a third straight month in May, according to RealtyTrac Inc., and the U.S. economy has shed about 6 million jobs since the recession began in 2007.

Serious delinquencies on prime loans, which account for two-thirds of all U.S. mortgages, rose to 661,914 in the first quarter from 250,986 a year earlier, according to the report. Overall, mortgages 60 days or more past due rose 88 percent from last year, the report said. ........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=amq8v.M.ak60

[lyonn]

1. Yet, the screaming talking repub heads are blaming it all of the Dems

Bush allowed the free market to do their thing, which they did, screw the people, and then blame the Dems for wanting to fix the devastated money market situation. Hey, I don't know the real words for raping the public, making fake and worthless loans to fool the world, but, the repubs proved they were filled with greed and got their money while the getting was good. Bush didn't allow any investigation or regulations.

Now tv is full of screaming about how Obama will destroy our market and country in four short years. Mind boggling.

The corps lay people off so they can show a good bottom line. Now they are left with a public that can't borrow their money, pay bills. Talk about a sinking ship. Obama must ignore the bs and keep after congress to do the right thing. Health care, keeping govt. agencies working day and night to protect us from the ungodly powerful corporations. No small task. If Obama sticks to his guns and truly ignores the idiotic rants from the repub congress that wants to ignore the problem, then, if he goes down in flames he can at least say he gave it his best shots. I believe Roosevelt did just that and won the game.

[OhioChick]

2. And here I thought that things were going so swimmingly. n/t