Ohio doing their part in rising foreclosure rates
By admin | June 14, 2007
Mortgage delinquency is at an all time high thanks to states in the Midwest. The first quarter numbers reveal that Midwestern states such as Indiana, Ohio, and Michigan are pushing the rate of delinquency up in the nation. As could be predicted the subprime delinquency was up while FHA and VA delinquency fell.
With close to 44 million first time mortgages out, there are 6 million subprime loans. The Prime loan delinquency rate remained stagnant over the first quarter. Subprime delinquency jumped up to 13.77 percent which was a move of 44 bps. In FHA loans, the delinquency rate fell 131 bps to a percentage of 12.15, while the VA delinquency rate was 6.49 percent a fall of 33 bps.
Delinquency rates weren’t the only rates rising in the first quarter as foreclosure percentages moved upward as well. The rate of loans entering into foreclosure moved to a record .58 percent of all loans.
“The percentage of loans in foreclosure would be well below the average of the last ten years were it not for Ohio, Michigan and Indiana,” MBA Chief Economist Doug Duncan said in a statement. “And the rate of foreclosures started nationwide would have fallen were it not for the big jumps in California, Florida, Nevada and Arizona.”
Statistically speaking, Indiana, Michigan, and Ohio account for 20 percent of all foreclosures making up on nine percent of all loans. Duncan stated that he believed the reason for the increase in Michigan, Ohio, and Indiana was due in part to the decline in manufacturing jobs in these states and subsequent layoffs.
On a side note there was word that 24 of the states declined in foreclosures started. But with the help of Nevada, Florida, and California the rate of loans entering foreclosure actually rose as a whole.
“The level of foreclosures and foreclosure starts for those three states exceed what occurred in Texas during the oil bust of the mid-1980s, and Ohio is the highest ever seen in the MBA survey for a large state,” he added.
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