Posted on 07/01/2009 6:54:50 PM PDT by FromLori
Delinquency rates on prime mortgages, the least risky category, more than doubled in the first quarter from a year earlier, according to statistics released yesterday by the government.
Prime mortgages 60 days or more past due climbed to 2.9 percent of such loans through March 31. At the same point last year, 60 day deliquencies were just 1.1 percent of all prime loans.
Two thirds of all mortgages in the US are prime mortgages, so any percentage increase in deliquencies represents a huge absolute number of deliquent mortgages.
So here are the absolute numbers: 661,914 prime mortgages were at least 60 days delinquent in the first quarter, a jump from 250,986 a year earlier.
Delinquency is a predictor of foreclosure in the future. And with house prices still falling--nationally, they're now down 30% from the peak--the recovery rates will be far lower and losses by lenders far steeper.
Prime mortgage deliquencies are now accelerating at a faster rate than any other residential mortgage loan category, faster than subprime and faster than Alt-A. (Of course, that's because these other categories have already fallen so far that prime is just now catching up.)
Also, the attempts to modify mortgages to keep people in their homes isn't working out so well.
Redefault rates are near 50% after Fannie/Freddie loan modifications. Of course Fannie and Freddie can grant bigger loan mods (and probably will), but taxpayers will have to eat the cost.
Private loan modifications are redefaulting at a 58.1% rate 12 months after modification . The best reaction to this dire news came from the brilliant investment advisor and blogger Michael Shedlock: "Can those people redeafulting can afford ANY payment? Even if they can the incentives to walk away are enormous."
(Excerpt) Read more at businessinsider.com ...
Gerald Celente.
Just the name is beginning to make my dogs shiver.
“We don’t genuflect to political altars.” Great line from the audio. “0bamageddon.”
“Terror is going to hit the US.”
His words. People should man up & listen to that piece. It’s almost Biblical.
Some Very Funky Trading is Going On
All the rumors about 'transparency' at the Fed are wrong. In fact, the rumors are outright lies. Nothing is transparent. Everything is obfuscation. That is why the Federal reserve must be audited. Greenspan and Bernanke must face the music.
Greedy crooks to wear deserve orange jump suits.
Just wait until these 5/1 ARMS start adjusting............................
Mortgage Meltdown....the sequel.
Worse — Some husbands were forced to get into bad deals by their wives. The little women have all the power today. But nobody wants to talk about withholding certain favors as extortion on FR . . . LOL, LOL !
Obama is to the economy what W.T. Sherman was to the Civil War.
No one looks down on the Duke University idiot trying to sell his adopted black son to white men for rape parties.
The Washington Post top brass decide to whore themselves - by selling access.
What has happened to the world? I guess America really is a liberal country now...
As we have stated numerous times, this financial crash shall be in phases, and phase II is shortly coming up.
Everything’s starting to fall apart.
And the government still has no idea where all the money went. Billions just vanished into thin air. But the truth that all those billions are overseas. Crooks are toasting our stupidity with Martel cognac and lighting Cuban cigars with $ 100 bills. Our vaunted FBI is next to useless. The FDIC is almost bankrupt. The courts are corrupt. Social Security is going broke. Our politicians are greedy, dishonest, sex crazed alcoholics and ego maniacs. Even our famous two party system is fabulously fake.
And Obama is in Moscow to play buddy games with KGB crooks. I woke up a long time ago. Are you getting the picture yet ______ ?
bfl
Don't hold back ex-Texan - tell us how you really feel. ( And the FDIC is almost broke? Ummm, I think that " almost broke" ship has already sailed...)
“For the past 20 years the U.S. has been shipping all manufacturing overseas. In the name of short-term profits. We were enjoying a fake economy. For the past 20 years the U.S. has been shipping all manufacturing overseas. In the name of short-term profits. We were enjoying a fake economy. Basically we kept the whole game afloat by selling fake equities to each other: stocks, bonds, houses, businesses, mortgages, and you name it. Everything was an illusion. People thought they had wealth because a broker sent them a print out. That was why Madoff was able to steal billions. People had been programed to believe lies printed on paper. stocks, bonds, houses, businesses, mortgages, and you name it. Everything was an illusion. People thought they had wealth because a broker sent them a print out. That was why Madoff was able to steal billions. People had been programed to believe lies printed on paper.”
You are often thought provoking, but man as the old Jerry Reid song goes “When you hot, you hot”. THIS should be on the front page of the Wall Street Journal, but you and I know this will never happen. Somehow, in just a few words
you have obviated the necessity to read over 50 books which attempted to explain (in 500 pages) what you did in under 100 words. Post this on your homepage. Yeah, it is that good!!
Thanks for setting me straight!! I should have researched my info before posting - a TARP sized apology.
No problem. I don't have the accurcy rate of Rush Limbaugh either...
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