Mortgage delinquencies inched up in the second quarter of this year for the first time in five quarters straight, directional displacement that has a little worried about mortgage regulators.
According to a new report from the Office of the Comptroller of the currency of mortgages that were delinquent between 30 and 59 days, there was 0.4 per cent increase to 3 percent in the second quarter compared to the previous quarter, while loans that were 60 + days late, the delinquency rate grew 0.1 percent to 4.9 percent.
These rate increases are so small, it would be easy for them. Statistically, second post generally increases in Mortgage delinquencies, making it difficult to say if the new rates are below the annual trend, or if there is something more behind them.
"It is something not to be overly worried, but it is clearly something to look to see where you're going," said Joseph Evers, Deputy Controller of OCC supervision Bank as quoted in a blog post to the Wall Street Journal.
Another official OCC mortgage, Bruce Krueger, seemed a little more agitated by the uptick in rates. In a conference call with reporters as reported in an article in MarketWatch, Krueger said:
"It is a problem that we think should be carefully monitored to determine if this is something more than just seasonal impact," he said. Said it will be important to see if new delinquencies move into the category of 60 days delinquent. "This is only seasonal? Or is this something more? So yes, we are paying very close attention to it. "
Overall the 12 percent of mortgage borrowers were both behind by one or more payments, or were already in the process of foreclosure. This proportion is up by 11.4 per cent compared to the first quarter. Beyond seasonal factors, the continually weak labour market is likely to blame for the rise.
Amber Nelson on 1° October 2011 in mortgage loan News, mortgage news
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