Foreclosure Starts Up, Delinquencies Decline

Washington, DC, Nov. 18, 2010 -- Foreclosure starts rose in the third quarter, but the delinquency rate for mortgage loans dropped overall, the Mortgage Bankers Association reported on Thursday.

Mortgages at least one payment past due or in foreclosure fell to 13.78% of all mortgages outstanding in the third quarter, down from 13.97% in the second quarter and 14.41% a year ago, on a non-seasonally adjusted basis.

But foreclosure starts hit 1.34%, up from 1.11% the previous quarter and down from 1.42% a year ago.

"Mortgage delinquency rates declined over the quarter and over the past year, due primarily to a large decline in the 90-plus day delinquency rate," Michael Fratantoni, MBA's vice president of research and economics, said in a press release.

"The number of loans in foreclosure also dropped, bringing the serious delinquency rate to its lowest level since the second quarter of 2009. However, the foreclosure starts rate increased for all loan types and the foreclosure starts rate for prime fixed loans set a new record high in the survey, as more loans entered the foreclosure process," Fratantoni said.