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Monday, June 04, 2007

LoanPerformance: Delinquency Rates Keep Rising

by Calculated Risk on 6/04/2007 10:25:00 AM

Mathew Padilla at the OC Register reports delinquency numbers from LoanPerformance: Delinquencies keep rising for subprime and Alt-A loans

In March, subprime loan delinquencies rose to 14.83%. Alt-A, the catch-all category above subprime, increased to 3.05%.
Of course, remember these numbers do not include foreclosures. According to the MBA:
... our latest subprime numbers are 14.4% delinquent by at least one payment, plus another 4.5% in foreclosure, for a total of 18.9% either delinquent or in foreclosure. For just subprime ARMs that number is 21.1%...
And it is probably going to get much worse, from Bloomberg:
"The 2006 vintage is the weakest in terms of underwriting standards," [Sheila Bair, chairman of the Federal Deposit Insurance Corp.] said. "We are expecting 2008 and early 2009 to be somewhat nasty." Next year the delinquency rate on such loans may hit 30 percent, she said.