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Freddie Mac's mortgage delinquency rate for its single family mortgages past due by 90 days or more rose for the 30th straight month in October, reaching a record 3.54 percent of its portfolio.
The steadily increasing percentage of delinquent loans in Freddie Mac's portfolio—delinquencies have been growing by about 20 basis points each month—mirrors the continued growth of delinquencies throughout the housing sector.
Yet Freddie's delinquency rate still is significantly lower than the national rate, which set a record in the last quarter.
The seriously delinquent rate, the non-seasonally adjusted percentage of loans that are 90 days or more delinquent, or in the process of foreclosure, increased 82 basis points for prime loans (from 5.44 percent to 6.26 percent), 216 basis points for subprime loans (from 26.52 percent to 28.68 percent), 89 basis points for FHA loans (from 7.78 percent to 8.67 percent), and 37 basis points for VA loans (from 4.69 percent to 5.06 percent) during the third quarter, according to the Mortgage Bankers Association.
The total number of loans 90 days or more past due or in foreclosure is now a little over 4 million as compared with 3.9 million new and previously occupied homes currently for sale, although there is likely some overlap between the two numbers.
A year ago the Treasury Department took control of Freddie Mac and Fannie Mae, following the passage of legislation to give the agency greater authority over the financial viability of the two Congressionally chartered companies and reports that shrinking capital reserves were declining.
Fannie Mae and Freddie Mac have played a key role in the government's efforts to shore up the U.S. housing market by buying more mortgage loans and to refinance and helping homeowners avoid foreclosure under the government's Making Home Affordable program.
From
Real Estate Economy Watch
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