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Investor Loan Defaults Rising Fastest: 'This rapid price appreciation attracted both speculators and homebuilders.'.
WASHINGTON -- It is common knowledge that subprime loans are in shambles. It is less well known, however, that investor loans are faring far worse than other type of subprime product.
The Mortgage Bankers Association said, "Defaults on mortgages where the owner does not live in the house are a major driver of the defaults in four of the states with the fastest rising rates of seriously delinquent loans."
At the top are Nevada and Florida, which face "the fastest increases in delinquent loans in the country," according to the MBA. Arizona and California follow up in third and fourth place, also ranking among "the states facing the fastest increases in delinquent loans in the country."
"Defaults are on the rise in most parts of the country, but it should be recognized that it is not always the case of a homeowner losing his or her home but is often the case of an investor gambling on a continued increase in home values and losing that gamble," said Doug Duncan, MBA chief economist.
As of June 30, 32% of prime mortgage defaults in Nevada were on non-owner-occupied properties, along with 24% of subprime loans. In Florida, the non-owner-occupied shares were 25% for prime loans and 14% for subprime loans. In Arizona, 26% of prime loan defaults were non-owner-occupied and 18% of subprime loans. In California, the rate was 21% of prime defaults and 15% of subprime. In the rest of the country non-owner-occupied homes accounted for only 13% of prime defaults and 11% of subprime defaults.
Moreover, the share of non-owner-occupied loans of all loan defaults, ...
- Delinquencies soar for prime and subprime loans.(Briefing Book)(Survey)
- Magazine article from: Mortgage Banking July 1, 2009 700+ words
...for both prime and subprime loans. Starting with the...For fixed-rate subprime loans, the seriously delinquent...360 basis points for subprime loans. The foreclosure inventory...numbers down by state, Nevada took the top spot with...
- Report reveals 2.2M borrowers face foreclosure on subprime loans.(FINANCE)
- Magazine article from: Real Estate Weekly January 3, 2007 700+ words
...19.4 percent) subprime loans issued during 2005...American families who get subprime loans find them crammed with...California, Arizona, Nevada, and greater Washington...families receive more subprime loans overall, African Americans...
- Subprime loans concentrated in low-income areas: L.A. County's defaults double...
- Magazine article from: Los Angeles Business Journal Leffall, Jabulani March 19, 2007 700+ words
Risky subprime loans account for at least a fifth of all...numbers are conservative because not all subprime loans could be counted in the review.) The fear is that a high concentration of subprime loans in any neighborhood may lead to a...
- PERSONAL FINANCE : Subprime loans more common here.
- Newspaper article from: Chattanooga Times/Free Press (Chattanooga, TN) September 6, 2006 700+ words
...home loans took on higher-interest "subprime" loans, federal data indicate. By comparison...borrowers refinanced their mortgages with subprime loans. The Consumer Federation of America...conventional mortgages refinanced with subprime loans -- defined as loans priced at least...
- The Philadelphia Inquirer On Personal Finance column: Real bubble in housing...
- Newspaper article from: Philadelphia Inquirer (Philadelphia, PA) February 11, 2007 700+ words
...lending practices, most involving subprime loans. And on Friday, the Mortgage Bankers...point "fact sheet" arguing that subprime loans are not a problem. Subprime lending...the government says. In theory, subprime loans can be good. In exchange for higher...
- Delinquencies increase among 'subprime' loans: Credit crunch could bring...
- Newspaper article from: Baltimore Sun (Baltimore, MD) March 15, 2007 700+ words
...foreclosures are rising, particularly among "subprime" loans for borrowers with less-than-perfect...close and warned that the market for subprime loans "has changed dramatically in the past...of the economy." The number of new subprime loans in the Baltimore metropolitan area...
- Low-Income, Minority Homebuyers Are Still More Likely to Get Subprime Loans.
- Newspaper article from: Knight Ridder/Tribune Business News November 27, 2002 700+ words
...subjected to the higher costs of subprime loans continued to soar last year...the fourth-largest share of subprime loans to white homeowners who were refinancing, the study reported. Subprime loans made up 10.06 percent of refinance...
- Group Says Minorities Disproportionately Burdened by Subprime Loans.
- Newspaper article from: The Orlando Sentinel (Orlando, Florida) (via Knight-Ridder/Tribune Business News) March 11, 2004 700+ words
...borrowers have wound up with high-cost, subprime loans when they could have qualified for...borrowers, only 6.7 percent had subprime loans. In metro Orlando, the figures were...and 16.7 percent of Hispanics had subprime loans, compared with 9.3 percent of non...
