Mortgage delinquency rates mixed

WASHINGTON, Aug. 26 (UPI) -- The Mortgage Bankers Association said Thursday delinquency rates on mortgages dropped in the second quarter but remain elevated compared to a year ago.

Delinquencies, which count loans at least one payment past due, dropped to a seasonally adjusted 9.85 percent, 21 basis points below the first quarter, but 61 basis points above the second quarter of 2009.

The non-seasonally adjusted delinquency rate, however, rose 2 basis points to 9.40 in the quarter, the MBA said.

One basis point is equal to 0.01 percent.

The statistic does not count homes in any process of foreclosure. That rate, including home loans with payments 90 days late, is listed as the seriously delinquent rate, which was 9.11 percent in the second quarter of 2010, down 43 basis points from the first quarter.

The seriously delinquent rate was 114 basis points higher than the second quarter a year ago.

"The good news is that foreclosure starts are down and the inventory of homes anywhere in the process of foreclosure fell for the first time since 2006," said Jay Brinkmann, MBA's chief economist.

"The disappointing news is that, after declining since the beginning of 2009, the rate of short-term delinquencies is going up," he said.