Industry NewsMortgage

Loans enter foreclosure process at record pace in Q2

MBA blames California, Florida, Nevada, Arizona for surge

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The rate of mortgage loans entering the foreclosure process during the second quarter broke a new record, the Mortgage Bankers Association said Thursday, and the worst may be yet to come. The rate of loans entering the foreclosure process hit a record 0.65 percent, compared with 0.58 percent during the previous quarter and .43 percent during the second quarter of 2006. In releasing the results of its latest delinquency survey, the MBA said the record rate of loans entering the foreclosure process was driven by data from four states where investors and speculators were particularly active during the boom: California, Florida, Nevada and Arizona. Those states have more than a third of the nation's subprime adjustable-rate mortgages (ARMs) and foreclosure starts on subprime ARMs, and are also responsible for most of the nationwide increase in foreclosures, the MBA said. "Were it not for the increases in foreclosure starts in those four states, we would have seen a nationwide drop in the...