Mortgage Delinquency Remains At Record-high Levels

Although serious mortgage delinquency rates continue to stabilize in the country's 100 largest metropolitan areas, they remain at record-high levels, according to a Center for Housing Policy press release based on ForeclosureResponse.org data.

The speed of home foreclosures remains a big issue, according to Jeffrey Lubell, executive director of CHP.

“Waiting too long to finalize a foreclosure prolongs recovery for borrowers and neighborhoods, but pursuing foreclosures too quickly shuts down real opportunities to save homes," he explained in the press release. "Both trends contribute to the destabilization of communities."

Serious delinquency - which is the share of loans in foreclosure plus the share of loans delinquent for 90-plus days - fell 10 percent from its peak from December 2009 to March 2011. The percentage of 90-plus-day delinquencies fell from 5.5 percent to 3.9 percent, according to the CHP. However, the number of foreclosed homes increased 12 percent in the same period.

A backlog of foreclosures plagues many of New York's metropolitan areas, as it remains the state with the longest average foreclosure process. The mixed report follows an August 15 Wall Street Journal report that while interest rates on loans are rising, the future of the home loan industry is iffy. According to LendingTree.com, average rates for a 30-year fixed-mortgage loan are around 4.5 percent, which is the lowest level of 2011, Reuters added.