Silent Storm: 18% of Subprime Loans Are Delinquent or Worse

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Another dose of bad foreclosure numbers today, this time from the Mortgage Bankers Assn. They should know; they made the loans.

From NYTimes.com: ‘Delinquencies and foreclosures among homeowners with weak credit moved higher in the first three months of the year, particularly in California...’

More: ‘Also today, a weekly survey showed that mortgage rates this week reached their highest level in almost a year; the national average for a 30-year mortgage was 6.74%, according to Freddie Mac.’

Still more: ‘Nearly 19% of all subprime loans, or 1.1 million mortgages, were either delinquent by more than 30 days or in foreclosure, up from 17.9% at the end of last year... ‘The storm of foreclosure is happening silently across the country,’ said Martin D. Eakes, chief executive of the Center for Community Self-Help.’

Photo Credit: LATimes