Are We There Yet…….FHA, Prime Mortgage Defaults at Records on Job Losses

Posted By on November 19, 2009

FHA, Prime Mortgage Defaults at Records on Job Losses

By Kathleen M. Howley

Nov. 19 (Bloomberg) — Foreclosures on prime mortgages and home loans insured by the Federal Housing Administration rose to three-decade highs in the third quarter, driven by the biggest job losses since the Great Depression.

One out of every six FHA mortgages was late by at least one payment and 3.32 percent were in foreclosure, the highest for both since at least 1979, the Mortgage Bankers Association said today. The delinquency rate for prime fixed-rate mortgages, considered home loans with the least risk, rose to 5.8 percent and the foreclosure inventory rose to 1.95 percent, the highest since at least 1972.

Homeowners are falling behind on their mortgages as the U.S. has lost more than 7 million jobs since December 2007, driving the unemployment rate to 10.2 percent in October, the highest since 1983. Declining home prices in most markets also are preventing many owners from selling their properties, said Jay Brinkmann, the Washington-based trade group’s chief economist.

“If you don’t have a job, you can’t pay a mortgage,” Brinkmann said in an interview. “You don’t pay a mortgage with economic output, you pay a mortgage with a paycheck.”

The share of all types of mortgages with one or more payments overdue climbed to a record seasonally adjusted 9.64 percent in the third quarter. The foreclosure inventory increased to 4.47 percent from 4.3 percent. Both were the highest in 37 years of data.

The percentage of loans on which foreclosure actions were started was a record 1.42 percent. New foreclosures on prime fixed-rate loans increased to 0.71 percent from 0.67 percent, while FHA foreclosure starts rose to 1.31 percent from 1.15 percent.

Subprime adjustable-rate foreclosures starts dropped to 4.92 percent from 5.52 percent and the total foreclosure inventory for the types of loans that sparked the global financial crisis rose to 24.7 percent from 24.4 percent, Brinkmann said.

Defaults on FHA mortgages, which require down payments as small as 3.5 percent, may create another lending crisis, Toll Brothers Inc. Chief Executive Officer Robert Toll said yesterday.

“It’s a definite train wreck and the flag will go up in the next couple of months: Bail us out. Give us more money,” said Toll, the head of the largest U.S. builder of luxury homes.

The FHA’s insurance reserve ratio fell to 0.53 percent, the lowest level in history, and more steps are needed to shore up the agency that guarantees one of every five single family loans, Housing and Urban Development Secretary Shaun Donovan said Nov. 12.

While the insurance fund’s capital ratio is at an all-time low, Donovan said those who say FHA is the next subprime- mortgage crisis are “dead wrong.” The quality of the loans FHA insures is “actually very good,” Donovan said.

A report yesterday showing an unexpected drop in housing starts highlighted how the property market remains reliant on government support to sustain a recovery. Homebuilding seized up as builders waited for President Barack Obama to extend an $8,000 housing tax credit for first-time buyers, which has since been passed and expanded.

Builders broke ground on 529,000 homes at an annual pace in October, down 11 percent from the previous month and the fewest since April’s all-time low, the Commerce Department said yesterday.

The U.S. economy returned to growth in the third quarter after a yearlong contraction, the Commerce Department said in an Oct. 29 report. The world’s largest economy expanded at a 3.5 percent pace from July through September. Household purchases climbed 3.4 percent, the most in two years.

In the second quarter, U.S. banks held $34 billion of properties acquired through foreclosure, including repossessed homes and condominium projects gone bust, according to the Federal Deposit Insurance Corp. in Washington. That’s almost double the amount from a year earlier.

Employment losses prevented many homeowners from refinancing during the quarter to make payments more affordable, Brinkmann said.

U.S. mortgage rates tumbled more than a quarter of a percentage point during the third quarter, to an average of 5.04 percent from 5.32 percent at the beginning of July, according to Freddie Mac in McLean, Virginia.

More at www.bloomberg.com

About the author

Comments

95 Responses to “Are We There Yet…….FHA, Prime Mortgage Defaults at Records on Job Losses”

  1. Agence de communication Skikda

    As a contractor, I address some of these issues are a regular basis thanks for making sense!

  2. Red Tea Detox Review

    Although, Every dark cloud has a silver lining.

  3. Red Tea Detox Program Reviews 2018

    Awesome post, will be a daily visitor from now on!

  4. Communication graphique Skikda

    Approaching from the standpoint of a fellow member within this trade, I really enjoy your write-up. I’ve constantly been in in actual fact like with this trade all my life so I’ve developed a discussion board for marketplace specialists to come toget…

  5. Red Tea Detox Review

    Hey! I just saw another message in one other weblog that regarded like this. How do you know all this stuff? That’s one cool post.

  6. Conseil en communication Skikda

    Ive been meaning to read this and just never obtained a chance. Its an issue that Im really interested in, I just started reading and Im glad I did. Youre a excellent blogger, 1 of the very best that Ive seen. This weblog absolutely has some informatio…

  7. Communication evenementielle Skikda

    I think youve produced some genuinely interesting points. Not too many people would in fact think about this the way you just did. Im truly impressed that theres so substantially about this subject thats been uncovered and you did it so properly, with…

  8. Agence de publicité et communication Skikda

    youre really a good webmaster. The website loading speed is incredible. It seems that you are doing any unique trick. In addition, The contents are masterpiece. youve done a fantastic job on this topic!

  9. Communication evenementielle Skikda

    You made an amazing post. Put up more content soon! I will bookmark your blog. 🙂

  10. Agence de communication Skikda

    I will surely foreward this post to all of my pals! Its very first-rate and a very superior check out!

  11. Une boite de communication Skikda

    How is it that just anybody can write a weblog and get as popular as this? Its not like youve said something incredibly impressive more like youve painted a pretty picture about an issue that you know nothing about! I dont want to sound mean, right her…

  12. Création agence de communication Skikda

    Thank you very much.

  13. Red Tea Detox Program Review

    Hello! I am going to marry my fiancee and we are looking for a good wedding photographer and wedding photographer. Could You propose a good wedding photographers? Thanks!

  14. Communication entreprise Skikda

    how you can feed your site?

  15. Pub marketing Skikda

    ¡Gran poste! Gracias por tardar la época de escribir algo que está realmente digno de la lectura. Encuentro demasiado a menudo el Info inútil y no algo que es realmente relevante. Gracias por su trabajo duro.

  16. Communication externe Skikda

    Excellent commentary. The other day I found this site and wanted to let you know that I have been gratified, going through your posts. I will be signing up to your RSS feed and will wait for your next post.

  17. Communication institutionnelle Skikda

    This blogis so much better than my cousin Steves blog. He really doesnt know what hes writing about.

  18. Agence de communication Skikda

    I was browsing via the web for some information since yesterday night and I at last found what i was looking for! This is a fantastic web page by the way, except it looks a slight difficult to see in my smart phone.

  19. Présentation agence de communication Skikda

    Not a unhealthy article, did it take you a lot of your time to consider it?

  20. Red Tea Detox Review

    Thank you for the sensible critique. Me & my neighbour were preparing to do some research about that. We got a first-class book on that matter from our local library and most books where not as influensive as your information. I am very glad to see…

  21. Agence de communication Skikda

    Momentous weblog, keeping me from updated

  22. Comment perdre du ventre a 40 ans pour un homme

    I like this web blog very much, Its a really nice billet to read and obtain info .

  23. Communication digitale Skikda

    Fantastic goods from you, man. I have understand your stuff previous to and you are just too wonderful. I actually like what youve acquired here, certainly like what youre stating and the way in which you say it. You make it enjoyable and you still car…

  24. Perdre du ventre femme apres 60 ans

    You made some decent points there. I did a search on the subject and found most people will go along with with your blog.

  25. Comment perdre du ventre pour une femme de 40 ans

    Every stick has two ends

  26. Exercice brule graisse ventre femme

    Thanks a lot in advance for your effective answer !. Really nice posting.

  27. Agence communication evenementielle Skikda

    Thanks man. It is special hearing

  28. Meilleur brule graisse femme

    I wanted to compose you a bit of scrutiny to finally say thank you yet again regarding the nice techniques you have documented at this time. It is quite wonderfully generous of people like you in giving extensively just what a lot of people would’ve o…

  29. Agence evenementiel Skikda

    Sick! Just got a brand new Iphone and I can now read your weblog on my phone’s browser, it didn’t work very well on my old Tmobile Wing.

  30. Red Tea Detox Reviews 2018

    Brilliant web site you have got here. If you will find the time, check out my own website Click Here I have been spending so much time on

  31. Agence de publicité Skikda

    ive visited this cool site a few times now and i have to tell you that i find it quite great actually. keep it up!

  32. Perdre du ventre homme apres 50 ans

    Hi, I found your content by mistake when i was searching internet for this issue, I have to say your post is in truth helpful I also love the theme, its amazing!. I dont have that much time to read all your post at the moment but I have bookmarked it a…

  33. Pub marketing Skikda

    I am going to go ahead and bookmark this article for my brother for a study project for class. This is a attractive web page by the way. Where do you pick up the design for this web page?

  34. Stratégie de communication Skikda

    I noticed something as well about this topic on different blog.Amazingly, your linear perspective on it is diametrically opposite to what I read previously. Im still reflecting over the conflicting points of view, but Im tipped strongly toward your poi…

  35. Bruleur de graisse puissant pour femme en pharmacie

    But wanna state that this is very beneficial , Thanks for taking your time to write this.

  36. Agence de communication Skikda

    We meet many people everyday in our life. We all struggle everyday try to be someone that good to other people life too. We need to appreciate all the people that we met everyday in our life.

  37. Conseil en communication Skikda

    I’m having a little problem I cannot seem to be able to subscribe your feed, I’m using google reader fyi.

  38. Brule graisse naturel pour femme

    I am constantly searching online for ideas that can assist me. Thank you!

  39. Agence de communication maroc Skikda

    Im searching on the web trying to find just how to begin this blog site thing as well as your website is nearly certainly really impressive.

  40. Red Tea Detox Program Review

    Wow, this was a really quality post. In theory Id like to write like this too taking time and real effort to make a good article but what can I say I procrastinate a lot and never seem to get something done.

  41. Regime maigrir apres 45 ans

    Its rare for me to discover something on the net that is as entertaining and fascinating as what you have got here. Your page is sweet, your graphics are outstanding, and whats more, you use source that are relevant to what you are saying. Youre certai…

  42. The Red Tea Detox Program Review

    Me and my close friend had been arguing about an difficulty related to this! Now I know that I was correct. lol! Appreciate it for the information you post.

  43. Red Tea Detox 2018

    Its like you read my mind! You appear to know a lot about this, like you wrote the book in it or something. I think that you can do with some pics to drive the message home a bit, but instead of that, this is fantastic blog. An excellent read. I will d…

  44. Agence web Skikda

    Many thanks for giving that excellent subject material on your internet site. I noticed it on the internet. I may check back again when you post additional aricles.

  45. Charte graphique Skikda

    Awesome post.

  46. Boite publicitaire Skikda

    @Mary – I agree that it would make things a little messier, but the majority of people I have spoken to reckon it is often worth doing.

  47. Red Tea Detox Review

    I am not capable of view this website properly on firefox I feel theres a problem

  48. Comment perdre son ventre pour un homme de 40 ans

    Can you email me with any tips about how you made your blog look this cool , Id be thankful!

  49. Agence publicitaire Skikda

    Very good suggestions, personally Im gonna have to bookmark this and come back to it. What would you suggest in regards to your post that you made a few days ago?

  50. Agence de communication maroc Skikda

    Are grateful for your current document. This specific study hobbies and interests folks entirely and also employing an individual, I learned brand new critical things. Previously worth it to read. Thank you. Bravo. You reside.

  51. Comment perdre du ventre a 40 ans pour une femme

    really liked the post you posted . it just isnt that easy to discover even remotely good posts toactually read (you know.. really READ and not simply browsing through it like a zombie before going to yet another post to just ignore), so cheers man for…

  52. Comment perdre du ventre a 40 ans pour un homme

    Wow Im frustrated. Im not saying you are responsible, really I think its everyone else that is responsible.

  53. Agence de publicité Skikda

    Sick! Just received a brand-new Pearl and I can now read your weblog on my phone’s browser, it didn’t do the job on my old one.

  54. Impression noir et blanc

    TY for blogging this, it had been quite handy and helped a ton Great theme, did you make it on your own? Looks superb! Facinating post to check on this awesome blog. Never write any replies but now i just did not resist ..

  55. Tissu impression numerique Skikda

    This is getting a bit more subjective, but I much prefer the Zune Marketplace. The interface is colorful, has more flair, and some cool features like Mixview that let you quickly see related albums, songs, or other users related to what youre listening…

  56. Impression photo format

    Wonderful solutions.Id like to recommend checking out such as something like cheeseburger. What are your thoughts?

  57. Les agences de publicité Skikda

    Took me time for you to check out all of the critiques, but I really enjoyed the piece. It proved to be very useful to me and I’m certain to all the commenters here! It’s always huge when you are able to not only be informed, but also engaged! I’m c…

  58. Impression catalogue Skikda

    Wonderful solutions.Id like to recommend checking out things like sausages. What are your thoughts?

  59. Impression de livre

    Thank you for that wise critique. Me & my neighbour were preparing to do some research about that. We obtained a excellent book on that matter from our local library and most books where not as influensive as your information. Im incredibly glad to…

  60. Communication evenementielle Skikda

    some truly great content on this web site , thankyou for contribution.

  61. Cout impression couleur Skikda

    Good to become visiting your weblog once more, it has been months for me. Well this post that ive been waited for so long. I need this article to complete my assignment inside the university, and it has exact same topic with your post. Thanks, terrific…

  62. Impression express Skikda

    Excellent post. I was checking continuously this blog and Im impressed! Extremely helpful information particularly the last part 🙂 I care for such info much. I was looking for this certain information for a long time. Thank you and good luck.

  63. Impression livret Skikda

    Fantastic article! I’ll subscribe correct now wth my feedreader software package and my seotons!

  64. Regime pour maigrir apres 50 ans

    nice information its usefulness and significance is overwhelming the way you covered all the basic necessary information is really impressive good work keep it up

  65. Stratégie de communication Skikda

    This is such a great resource that you are providing and you give it away for free. I love seeing websites that understand the value of providing a quality resource for free. It?s the old what goes around comes around routine. Did you acquired lots of…

  66. Fournisseur impression numerique Skikda

    Relying on your instanct is tough for most of us. It can take many people a long time to build a strong moral system. It doesnt really just happen if you know what I mean.

  67. Impression photo poster

    I sincerely took pleasure in reading your site, you explained some good quality points. I want to bookmark your post. I saved you to delicious and yahoo bookmarks. I will attempt to revisit to your webpage and examine more posts.

  68. Red Tea Detox

    Wonderful job right here. I definitely enjoyed what you had to say. Keep going because you certainly bring a new voice to this subject. Not many people would say what youve said and still make it interesting. Properly, at least Im interested. Cant wait…

  69. Prix impression photo Skikda

    Distinguished website blog, Talented comments that I can take on board. Im shifting forward and might apply to my present job as a pet sitter, which is very enjoyable, however I have to additional grow expand. All the Best

  70. Impression tres grand format Skikda

    But yeah Many thanks for taking the time to chat about this, I consider strongly about it and in actuality like learning more on this topic. If possible, as you gain expertise, would you mind updating your website with more information? It is extremely…

  71. Impression web Skikda

    These kind of post are always inspiring and I prefer to check out quality content so I happy to discover many first-class point here in the post, writing is simply huge, thank you for the post

  72. Impression format Skikda

    Thank you for this very useful information. I found it quite interesting. Will definately keep close track of these pages. Great blog post. Youve gained a totally new reader. Please continue this awesome work and I anticipate see more of your superb ar…

  73. Impression tres grand format

    Impressive web site, Distinguished feedback that I can tackle. Im moving forward and may apply to my current job as a pet sitter, which is very enjoyable, but I need to additional expand. Regards

  74. Impression prix

    This post receives a thumbs way up from me.

  75. Devis impression en ligne

    keep up the nice work on the site. Do like it! :p Could use some more frequent updates, but i am sure that you got other things things to do like we all do. =)

  76. Devis impression Skikda

    How-do-you-do? an amazing blog post dude. Thnkx But I’m having problem with ur rss feed. Unable to subscribe. Is there anybody else facing similar rss feed issue? Anybody who knows please respond. Thanks in advance

  77. Impression a2 Skikda

    Many thanks pertaining to discussing the following wonderful content on your internet site. I discovered it on google. I will check back again once you post extra aricles.

  78. Impression sur verre

    Hello there! My name is john I am a 20 many years previous pupil. I love to examine. I dont have lots of time. It is why I realized how to read better and faster, I Think that should you study lots of books and megazines youve to find out the ability o…

  79. Impression textile numerique

    I admire your website , it’s filled of lot of information. You just got one perennial visitor of this blog.

  80. Impression numerique offset Skikda

    You found your niche. Great Article

  81. Red Tea Detox Review

    Great post. I found what I was looking for. Do you mind if I post this on my website and give you credit? If not, it’s ok.

  82. Maigrir apres 45 ans forum

    Locate a complex is that it looks more into.

  83. Impression tissu Skikda

    I must say, as considerably as I enjoyed reading what you had to say, I couldnt help but lose interest after a while. Its as if you had a good grasp around the topic matter, but you forgot to include your readers. Perhaps you should think about this fr…

  84. Boite communication Skikda

    inordinate entry youve take in

  85. Conseil en communication Skikda

    Aw, this was a really great post. In theory Id like to write like this also – taking time and real effort to make a good article but what can I say I procrastinate alot and never seem to get something done.

  86. Agence publicité Skikda

    Ничего так

  87. Impression autocollant Skikda

    Presently its perfect time to make a few plans for the long run and it is the moment to enjoy. Ive learn this publish and if I may just I want to recommend you few interesting issues or suggestions. Maybe you could post next post regarding this post. I…

  88. Peut on maigrir apres 60 ans

    I found your weblog on google and check several of the early posts. Preserve up the excellent operate. I just additional up your RSS feed to my MSN News Reader. Seeking forward to reading through additional from you later on!

  89. Impression flyer a5

    You should really moderate the remarks on this page

  90. Impression offset ou numerique Skikda

    So what is the magic mix? Well I am going to provide game away at my so next seminar on E-Mail Marketing but here is a sneak preview of the weather that Ive discovered have a massive impact on results

  91. Impression numerique sur bache

    continue with the the great work on the site. I appreciate it. Could maybe use some more updates more often, but im sure that you got some more or better things to do like we all have to do unfortunately. :p

  92. Impressions says:

    Impressions

    Do not give to me minute?

  93. Impression photocopie

    If you can only understand one thing, this is it: is quite transparent actually.

  94. Impression photo internet

    Have you ever ever considered including extra movies to your blog posts to keep the readers more entertained? I mean I simply learn by your complete article of yours and it was fairly good but since Im more of a visual learner,I discovered that to be e…

  95. regime brule graisse 30 jours

    Nice post. I learn something more difficult on diverse blogs everyday. It will always be stimulating to learn content from other writers and practice a little there. I’d opt to apply certain while using content on my blog whether or not you don’t mind.…

Copyright © 2018 The Stated Truth