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News » Industry News » February 2012 »

Mortgage delinquency rate edged higher

The number of borrowers who were delinquent on their mortgage payments increased during the fourth quarter of 2011, a report from TransUnion found.

According to the real estate analysts firm, the mortgage delinquency rate rose to 6.01 percent during the three-month period. This is only the second time the rate has increased since peaking at the end of 2009.

"To see that, quarter over quarter, fewer homeowners were able to make their mortgage payments is not welcome news," said TransUnion financial services business unit president Tim Martin. "However, it was not unexpected."

The report indicated that this is due to seasonal trends the mortgage industry often experiences around the holiday season. A number of brokers and lenders posit that it may be due to a some borrowers struggling to balance holiday spending with necessary expenses.

Meanwhile, the firm also stated that employment and home prices continued to suffer at the end of 2011, causing a spike in negative equity. As a result, a number of the households may have found themselves unable to make their mortgage payments.

2012-02-14 17:46:11