Industry News

Foreclosure index up 12.5%

Michigan, Ohio dominate list of risky markets

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The risk of mortgage loan delinquencies rose 4.4 percent from the second quarter but remains low compared to 2003-2004 thanks to low unemployment, according to an analysis by First American CoreLogic. The company's Core Mortgage Risk Index, which estimates the risk of delinquencies due to fraud, collateral risk, house-price dynamics and local economies, "is increasingly driven by the fallout caused by high delinquency rates in the subprime and Alt-A markets," CoreLogic reports. At 1.05, the delinquency index is well below peaks in excess of 1.2 reached during the third and fourth quarters of 2003. An index of 1 equals the baseline established for the report in the first quarter of 2002. But CoreLogic's Foreclosure Index was up 12.5 percent from the previous quarter, breaking the 1.7 mark for the first time in the report's five-year history. "This increase is an indicator that many of the early payment delinquencies identified in the subprime and Alt-A markets, particularly in the 2...