Delinquency Rate For Mortgage Loans Hits 23-Year High
The delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 5.82 percent of all loans outstanding in the fourth quarter of 2007 on a seasonally adjusted (SA) basis, up 23 basis points from the third quarter of 2007, and up 87 basis points from one year ago, according to MBA’s National Delinquency Survey. The delinquency rate does not include loans in the process of foreclosure. The percentage of loans in the foreclosure process was 2.04 percent of all loans outstanding at the end of the fourth quarter, an increase of 35 basis points from the third quarter of 2007 and 85 basis points from one year ago.The rate of loans entering the foreclosure process was 0.83 percent on a seasonally adjusted basis, five basis points higher than the previous quarter and up 29 basis points from one year ago.
Countrywide and ACORN Partner For Foreclosure Prevention
Countrywide Financial Corporation and the Association of Community
Organizations for Reform Now (ACORN), have reached an agreement that will
further enhance the process for helping borrowers who are delinquent on
their subprime loan payments find home retention solutions and avoid
foreclosure.
Countrywide and ACORN have partnered to formalize workout programs for
borrowers with all types of subprime loans, not just hybrid adjustable rate
mortgages (”ARMS”) with pending rate resets. Further, the agreement
addresses home retention options and procedures for borrowers in various
stages of mortgage delinquency, not just borrowers who are current in their
payments. In these ways, the initiative broadens the approaches of
Countrywide’s previously announced $16 billion home retention initiative,
and the industry-backed HOPE NOW(R) alliance program.