Delinquencies & New Foreclosures Fall: Is this the Beginning of the End?

GSIG LLC

Both the national residential delinquency rate and new foreclosures initiated dropped in the fourth quarter of 2009. This is a sign that the industry may have finally turned the corner on the housing crisis.

The Mortgage Bankers Association (MBA) says states:

“We are likely seeing the beginning of the end of the unprecedented wave of mortgage delinquencies and foreclosures that started with the subprime defaults in early 2007, continued with the meltdown of the California and Florida housing markets … and culminated with a recession that saw 8.5 million people lose their jobs.”

According to MBA’s fourth quarter report, the national delinquency rate for mortgage loans on residential properties has fallen to 9.47% of all loans outstanding. That’s down 17 points from 9.64% in the third quarter of 2009.