Truemors
With so many folks living literally on credit, the U.S. mortgage industry is only getting worse according to this report.
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US home foreclosure filings doubled last month from a year ago and the nation’s biggest mortgage lender said late payments rose, suggesting the US mortgage crisis is not abating.The number of foreclosures jumped to 223,538 in September, 99 per cent higher than the number last year, though down 8 per cent from August, according to RealtyTrac, which compiles housing data. California had the largest number of foreclosures, with 51,259, and Florida was second, with 33,354.
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Nevada, which has seen explosive housing growth around Las Vegas, had the highest rate of foreclosures, with one for every 185 households. The overall foreclosure rate was one for every 557 households.
The new report on foreclosures came as Countrywide Financial, the largest US mortgage lender, said delinquencies as a percentage of unpaid loans rose to 5.85 per cent from 4.04 per cent a year ago. New loans issued by Countrywide fell 44 per cent as home sales slowed. Countrywide said pending foreclosures as a percentage of unpaid balances more than doubled, from 0.51 per cent to 1.27 per cent.
Issuance of adjustable rate mortgages, the cause of many of the defaults among subprime home buyers, dropped 76 per cent. Loans to buyers with poor credit histories dropped 92 per cent as Countrywide moved away from providing mortgages to risky borrowers.
Overall mortgage loan funding at Countrywide totalled $21bn (€15bn, £10bn) in September, down from $38bn last year.
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