Recovery? Then why do mortgage loan delinquencies keep climbing?
Yes, I know we are being told on Sunday morning power-breakfast talk shows that the nation's economy is improving. But the latest survey on the delinquency rate for mortgage loans from the Mortgage Bankers Association would seem to indicate otherwise.
You can read the report itself for the hard numbers, but, the bottom line is, the delinquency rate has now broken the record set just this past quarter.
And, read what the MBA's Chief Economist, Jay Brinkmann, writes in the report: "Despite the recession ending in mid-summer, the decline in mortgage performance continues. Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point increases in GDP."
Wow. Sounds like a snide remark to me. But also a truthful one. Too bad the politicians in Washington don't seem capable of such truth-telling.
The fact is, as this latest survey clearly shows, we are still very much suffering economically....if not on Wall Street, than certainly on Main Street.And, we are no longer talking about subprime foreclosures.
Again, Jay Brinkmann of the MBA : "Prime fixed-rate loans continue to represent the largest share of foreclosures started and the biggest driver of the increase in foreclosures."
Ask homeowners facing or going through foreclosure whether they think the economic picture is brighter? I dare say the answer you get will not be what you hear on the Sunday morning news maker shows.