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Thursday, September 20, 2007

Late Mortgage Payments Continue to Climb

by Calculated Risk on 9/20/2007 10:36:00 AM

From the WSJ: Late Mortgage Payments Continue to Climb

Mortgage delinquencies jumped again in August, according to new data from Equifax and Moody's Economy.com. ...

Nationwide, 3.56% of mortgages were at least 30 days past due last month, up 0.31 percentage points from July. The delinquency rate has increased about 1.5 points since bottoming out at the end of 2005, with fully half of that increase coming in the last three months.

... The rise in bad loans is "broad based," says Mark Zandi, chief economist at Moody's Economy.com. "That signals that foreclosure problems are going to be widespread."
As a reminder, here is a chart from BofA analyst Robert Lacoursiere via Mathew Padilla at the O.C. Register. Please see Mathew's discussion from June 29th: (updated URL) BofA Analyst: Mortgage correction just 'tip of the iceberg'.

BofA ARM Reset Chart

ARM resets are just one cause of rising delinquencies, and most of the problems from resets are still ahead of us.