Mortgage News

A quarterly release from the Mortgage Bankers Association revealed that mortgage payment problems eased during the first three months of 2011 for every category of default. The rate of loans past due, unadjusted for seasonal factors, decreased 1.17 percentage points to 7.79% from 8.96% during the last quarter of 2010. It was down 1.59 points year-over-year.. "These numbers point to a mortgage market on the mend," said Jay Brinkmann, MBA's chief economist. "Foreclosure starts are at the lowest level since the end of 2008 and had the second largest drop ever. The percentage of loans somewhere in foreclosure is down from last quarter's record high and also had one of the largest drops we have ever seen." He noted the improved performance of loans issued during the years 2005 through 2007, many of which were of the toxic, subprime variety. Those were the mortgages that, he said, "drove the market collapse." They still accounted for 65% of all delinquencies last quarter, even though they represent just 31% of loans outstanding.