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Tuesday, December 02, 2008

Mortgage Delinquency Rate to Rise Sharply in 2009

by Calculated Risk on 12/02/2008 09:39:00 AM

From the WSJ: Delinquent Mortgages Set to Nearly Double in 2009

TransUnion LLC ... predicted that the proportion of consumers with mortgages that are 60 days or more past-due will hit 7.17% in the fourth quarter of 2009.

That would be the highest level reached since the Chicago credit bureau ... first started tracking these statistics in 1992. It compares with an expected delinquency rate of 4.67% at the end of 2008.
"There are a lot more loans that will be resetting throughout 2009 through 2011," says Ezra Becker, principal consultant in TransUnion's financial-services group, who notes that rising unemployment and depreciating home values are other contributing factors. "There may be an ongoing flow of consumers who may now be able to pay their mortgage but may not be able to a year from now."
We're all subprime now!