RobertB
September 6th, 2007, 10:38 AM
Investor Loans Major Part of Defaults in States with Fastest Rising Delinquencies, MBA Says
Washington, D.C. (August 30, 2007) - Defaults on mortgages where the owner does not live in the house are a major driver of the defaults in four of the states with the fastest rising rates of seriously delinquent loans, according to data released today by the Mortgage Bankers Association (MBA).
As of June 30, 32 percent of prime mortgage defaults in Nevada were on non-owner occupied properties, along with 24 percent of subprime loans. In Florida, the non-owner occupied shares were 25 percent for prime loans and 14 percent for subprime loans. Nevada and Florida are facing the fastest increases in delinquent loans in the country.
In Arizona, 26 percent of prime loan defaults were non-owner occupied and 18 percent of subprime loans. In California, the rate was 21 percent of prime defaults and 15 percent of subprime. Arizona and California are also among the states facing the fastest increases in delinquent loans in the country.
In contrast, in the rest of the country, non-owner occupied homes accounted for only 13 percent of prime defaults and 11 percent of subprime defaults.
"Defaults are on the rise in most parts of the country, but it should be recognized that it is not always the case of a homeowner losing his or her home but is often the case of an investor gambling on a continued increase in home values and losing that gamble," said Doug Duncan, MBA Chief Economist and Senior Vice President of Research and Business Development.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/56535.htm
Washington, D.C. (August 30, 2007) - Defaults on mortgages where the owner does not live in the house are a major driver of the defaults in four of the states with the fastest rising rates of seriously delinquent loans, according to data released today by the Mortgage Bankers Association (MBA).
As of June 30, 32 percent of prime mortgage defaults in Nevada were on non-owner occupied properties, along with 24 percent of subprime loans. In Florida, the non-owner occupied shares were 25 percent for prime loans and 14 percent for subprime loans. Nevada and Florida are facing the fastest increases in delinquent loans in the country.
In Arizona, 26 percent of prime loan defaults were non-owner occupied and 18 percent of subprime loans. In California, the rate was 21 percent of prime defaults and 15 percent of subprime. Arizona and California are also among the states facing the fastest increases in delinquent loans in the country.
In contrast, in the rest of the country, non-owner occupied homes accounted for only 13 percent of prime defaults and 11 percent of subprime defaults.
"Defaults are on the rise in most parts of the country, but it should be recognized that it is not always the case of a homeowner losing his or her home but is often the case of an investor gambling on a continued increase in home values and losing that gamble," said Doug Duncan, MBA Chief Economist and Senior Vice President of Research and Business Development.
http://www.mortgagebankers.org/NewsandMedia/PressCenter/56535.htm