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Reuters has the 411 on mortgage repayment and the results shouldn’t surprise anyone. Alt-A (your good credit no income) loans and subprime (bad credit, not-so-much income) loan repayments are slowing and delinquencies are rising.
No surprise either that the 2007 vintage of subprime mortgages is the worst on record as those that got in last are giving up first. Little to gain, little to lose.
From Reuters on the increase in loan delinquencies:
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.
“The 2007 issuance year continues to be the worst-performing vintage in terms of cumulative losses,” S&P said, regarding subprime mortgages. “Serious delinquencies” of payments 90 days late or more and foreclosures also are rising, S&P said.
Hat tip Calculated Risk for the link.
Last 3 posts by Morgan
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