American Land Title Association
Print Friendly
Home  >  News Room
News Room

SoftPro is the nation's leading provider of Real Estate Closing and Title Insurance software

North American Title Insurance Company is a seasoned title insurance underwriter that has been helping customers achieve the American dream of homeownership for more than 50 years. In the past several years, we have become known as the “underwriter next door,� because our associates are always easy to reach and our processes are, at all times, quick and straightforward. Our agency application process is fast and transparent for qualified agents. NATIC offers a one-hour underwriting response guarantee that is unparallelled in our industry. In addition, we value our agents based on their title industry knowledge and experience, not just on profits alone.

Mortgage Delinquencies Fell and Foreclosure Inventory Rose in Fourth Quarter

March 5, 2002

WASHINGTON, D.C. ?In the fourth quarter of 2001, the share of homeowners paying their mortgages late decreased, while the percentage of mortgages in the foreclosure process increased, according to a quarterly survey conducted by the Mortgage Bankers Association of America (MBA).

In MBA?s latest National Delinquency Survey (NDS), the delinquency rate for loans on one- to four-unit residential properties was 4.65 percent in the fourth quarter of 2001, down 22 basis points from the third quarter of 2001. The percentage of loans in the process of foreclosure at the end of the quarter rose 9 basis points to 1.04 percent, while the percentage of loans in which foreclosure started during the quarter dropped 2 basis points to 0.36 percent.

Douglas G. Duncan, MBA?s Chief Economist, says that the primary reason for the decrease in overall delinquency rates in the fourth quarter is that shorter-term delinquencies (loans 30 days past due) dropped back to second quarter levels. The events of September 11 may have contributed to this temporary rise in short-term delinquencies, which were ultimately brought current in the fourth quarter.

"On a year-over-year basis, mortgage delinquencies are still up 15 basis points over the fourth quarter of 2000," says Duncan. "Furthermore, the percentage of loans in the foreclosure process are up 19 basis points over the fourth quarter of 2000, and 9 basis points over the last quarter. Nonetheless, the fourth quarter drop in the overall delinquency rate over the third quarter, coupled with recent economic indicators, lead us to be cautiously optimistic that delinquencies may be stabilizing."

The delinquency rate decreased for each of the three loan types during the fourth quarter of 2001. The rate for conventional loans was 3.00 percent, down 13 basis points from the previous quarter, and the rates for FHA and VA loans were 10.97 percent and 7.70 percent?down 39 and 41 basis points?respectively.

The inventory of loans in the process of foreclosure at the end of the quarter increased for each of the loan types. The percentage of conventional loans in foreclosure increased 6 basis points to 0.76 percent. The percentage of FHA loans in foreclosure increased 23 basis points to 2.17 percent. The percentage of VA loans in foreclosure increased 8 basis points to 1.33 percent.

On a smaller sample of loans, the NDS found that the delinquency rate for both fixed-rate mortgages (FRMs) and adjustable-rate mortgages (ARMs) decreased in the fourth quarter. The rate dropped 10 basis points to 3.87 percent for fixed-rate mortgages and dropped 35 basis points to 5.91 percent for ARMs.

Copyright: Mortgage Bankers Association

Print Friendly

How To Find Us:
American Land Title Association
1800 M Street, NW, Suite 300S
Washington, D.C. 20036-5828
P. 202.296.3671 F. 202.223.5843
Copyright © 2004-2016 American Land Title Association. All rights reserved.
SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment