Thursday, May 22, 2008

S&P: Subprime and Alt-A Delinquencies Rising

by Bill McBride on 5/22/2008 11:50:00 AM

From Reuters: Subprime, Alt-A mortgage delinquencies rising: S&P

Delinquencies for Alt-A mortgages rated between 2005 and 2007 are climbing, with total delinquencies rising as high as 17 percent in some cases, more than 6 percentage points higher than previous estimates, the ratings agency said in a report.

Lower-quality subprime mortgage delinquencies soared as high as 37 percent for mortgages originated in 2006, 4 percentage points higher than previous estimates, S&P said.

Subprime mortgages originated in 2007 saw delinquencies climb to almost 26 percent, 6 percentage points higher.
Yesterday, the Fed released the commercial bank delinquency report and it appears that prime delinquencies are rising rapidly too.