An increase in delinquencies on subprime and FHA-backed loans helped push the overall delinquency rate on all mortgage loans up 28 basis points in the third quarter, to 4.67 percent, the Mortgage Bankers Association said Wednesday. The increase in delinquencies took place across the board for all major loan types, but was noticeably larger for subprime loans -- particularly subprime ARMs, said MBA Chief Economist Doug Duncan. Duncan said that although payment performance "has deteriorated somewhat from the very strong performance of recent years," the market is responding to changing economic conditions. He urged lawmakers not to take regulatory or legislative action that would impede an efficient market. The increase in delinquency in subprime loans "is not surprising given that subprime borrowers are more likely to be susceptible to the cumulative increases in rates we've experienced, and the slowing of home price appreciation that has resulted," Duncan said of the results of MBA's ...
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