Late mortgage payments are up

REAL ESTATE WATCH

foreclosures, too

January 21, 2001

Late home mortgage payments and the number of homes going into foreclosure increased in the third quarter last year, according to a survey by the Mortgage Bankers Association of America.

The MBA's latest National Delinquency Survey showed the delinquency rate for loans on one- to four-unit homes rose almost a quarter percent to 4.04 percent during the third quarter. Loans moving into foreclosure also were up five basis points to 0.31 percent.

Maryland was ahead of the national average in both categories, posting a 5.35 percent delinquency rate for loans; loans moving into foreclosure stood at 0.45 percent. The survey included roughly 827,000 Maryland home mortgages, according to an MBA spokesman.

Pointing to a slowing economy and increasing unemployment, the MBA's chief economist, Douglas G. Duncan, said in a news release that the increase in the delinquency rate was expected.

"This is a continuation of the maturing of loans originated during the period from 1997 through 1999, which are moving toward their peak delinquency years," he said.

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