B&C Problems Creep Up.(subprime mortgage delinquencies and foreclosures rising in US)

After registering an unexpected dip in the middle of this year, serious delinquencies and foreclosure rates on subprime credit quality mortgage loans have started rising again, according to LoanPerformance here.

The company, which maintains the industry's largest database about the performance of B&C loans, found that serious delinquencies on subprime loans climbed 10 basis points in September to 6.96%. Serious delinquencies are loans 90 days past due or more. Meanwhile, 4.17% of loans were in the process of foreclosure, up two basis points from a month earlier.

These are still below the peak levels for subprime delinquencies and foreclosures, according to LoanPerformance. Serious delinquencies peaked at 7.89% in February of 2002. At that time, 5.03% of subprime loans were in the foreclosure process.

"It does look like it's creeping back up again," said Sheila Meagher, vice president for market research at LoanPerformance.

Regionally, the Rust Belt states of Illinois, Indiana, Ohio and Kentucky continue to suffer high delinquency rates on subprime loans. In those states, and in Utah and Mississippi, more than 9.99% of subprime loans were more than 90 days past due or in ...