Default Time Special Report.(Brief Article)

Not all is well in the mortgage industry right now. Delinquencies have been rising, as more and more borrowers find themselves tangled up in an economic slowdown. Economists are divided about whether things are getting worse or better. Some say the slowdown is inevitable after the longest economic expansion in U.S. history. Others say warning signs indicate things could get much worse.

Nobody knows whether or not a recession is on the horizon, but one thing is clear: U.S. consumer and mortgage debt is at a record level, and many homeowners are ill-prepared to weather a serious economic downturn. A key statistic to watch will be unemployment. Downsizing is one of the "Four Ds" (along with divorce, death and disease) that contribute to mortgage foreclosures. Anytime big or small companies announce layoffs, that's bad news for mortgage servicers.

And there have been plenty of layoff announcements recently. Fortunately, the unemployment rate remains low by historical standards. But that's little ...