Mortgage Delinquencies in Florida Rise, Says New MBA Survey

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(News Source: Mortgage Bankers Association)

(WASHINGTON, D.C.) -- The delinquency rate for mortgage loans on residential properties in Florida was 10.8 percent at the end of the second quarter of 2009, an increase of 13 basis points, according to the Mortgage Bankers Association.

The delinquency rate excludes loans in the process of foreclosure. The percentage of loans in Florida on which foreclosure was started during the quarter fell 15 basis points to 2.64 percent, while the percentage of loans in the foreclosure process at the end of the quarter rose 140 basis points to 11.96 percent.

These rates are not seasonally adjusted. Mortgage delinquency rates normally drop in the first quarter of the year and begin to climb again in the second quarter due to a variety of seasonal factors.

The delinquency rate for prime adjustable rate mortgage loans decreased 154 basis points to 11.98 percent and the rate for prime fixed rate mortgage loans increased 57 basis points to 7.02 percent. The delinquency rate for the subprime ARM loans decreased 47 basis points to 20.65 percent, while the rate for subprime fixed rate loans increased 145 basis points to 23.99 percent.

The delinquency rates for FHA and VA loans were 14.82 percent and 7.96 percent, respectively--up 95 basis points for FHA loans and up 30 basis points for VA loans. The foreclosure start rate for prime ARM loans in Florida increased 38 basis points to 4.37 percent, while the rate for prime fixed rate loans increased 11 basis points to 1.54 percent. The foreclosure start rate for subprime ARM loans decreased 273 basis points to 6.49 percent, while

the rate for subprime fixed rate loans decreased 18 basis points to 4.26 percent.

The percent of prime ARM loans in foreclosure increased 337 basis points to 19.97 percent and increased 106 basis points to 5.4 percent for prime fixed rate loans. The rate for subprime ARM loans increased 282 basis points to 43.84 percent, while the rate for subprime fixed rate loans increased 182 basis points to 16.29 percent. The percentage of FHA loans in foreclosure increased 91 basis points to 6.73 percent. The percentage of VA loans in foreclosure increased 51 basis points to 3.99 percent.

Among the 50 states and the District of Columbia, Florida ranked 6th in delinquencies and 2nd in foreclosures started. Mississippi ranked first in delinquencies with a rate of 13.04 percent and Nevada ranked first in foreclosure starts with a rate of 3.70 percent. Florida has 22 percent nonprime borrowers (FHA and subprime) versus a national average of 19 percent.

On a national level, the delinquency rate for mortgage loans on one-to-four-unit residential properties was 8.86 percent on a non-seasonally adjusted basis, up 64 basis points from 8.22 percent in the first quarter of 2009. The seasonally adjusted delinquency rate on residential properties was 9.24 percent in the first quarter, up 12 basis points from last quarter's seasonally adjusted rate. The non-seasonally adjusted percentage of loans in which foreclosure was started during the quarter fell one basis point to 1.36 percent, while the non-seasonally adjusted

percentage of loans in the foreclosure process at the end of the quarter rose 45 basis points to 4.3 percent.

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