Industry News

Late mortgage payments up nationally thanks to Katrina

But loans in foreclosure fall, MBA says

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Late mortgage payments went up in the third quarter of 2005 compared to the second quarter, blown up 10 basis points by Hurricane Katrina, a mortgage survey today revealed. At the end of the third quarter, the seasonally adjusted delinquency rate for mortgage loans on single-family residential properties hit 4.44 percent, reflecting the impact of Katrina, the Mortgage Bankers Association's 2005 second-quarter national delinquency survey reported. If not for Katrina, late payments would have dropped to 4.21 percent from the previous quarter, according to Doug Duncan, the association's chief economist. In fact, delinquencies, or late payments, for all loan types were lower in the U.S. once the hurricane effects are eliminated, the MBA said. "Louisiana went from a 6.7 percent delinquency rate to a 26.4 percent delinquency rate" after Katrina, the highest in any state since the MBA survey began in 1979, Jay Brinkmann, the MBA's vice president of research and economics, said in a conferenc...