Why bubble-era home mortgages are a disaster waiting to happen

Everett CollectionRemember all those sub-prime mortgages that blew up in 2007 and popped the housing bubble? The widely-held consensus is that millions of them were foreclosed as housing markets cratered. Since then, the remaining ones have been quietly disappearing as markets recovered.

In 2016, Fitch Ratings first published a spreadsheet showing what percentage of these loans had been delinquent for more than three-, four-, or five years. Here is an updated table showing the 10-worst states and how the number of deadbeat borrowers has soared. Another way to gauge the extent of the problem is to look at the major metros with the highest delinquency rate. Here is a table of the 10 metros with the worst delinquency rate in early 2016, taken from Black Box Logic's database.

Some of you may object that the delinquency data for the 10 worst metros is three years old. What if the situation has improved dramatically since then? Keep in mind that the delinquency rates for the 10 worst states in the first table cover the period through February 2018 and shows minimal improvement in only a few places. As for the table on the worst metros, I have found nothing so far to indicate that the delinquency rates have improved.

According to the Securities Industry and Financial Markets Association , there are more than $800 billion of these bubble-era loans still outstanding as of the third quarter of 2018. If roughly 20% of them are seriously delinquent — many for five years or more — isn't that a cause for concern? Remember that the delinquency rate is much higher in many major metros.

By the middle of 2015, according to the database of BlackBox Logic, more than 40% of all outstanding California non-agency securitized loans had been modified. Four years earlier, that figure was only 17%. These were all seriously delinquent loans at the time of modification. I have no doubt that this percentage is higher than 40% now, perhaps as high as 50%.

The word 'valuation' no longer fits in the world we live in.

clinton home equity redistribution

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The new aristocrats of powerExecutives rules their companies. Why not countries? That's true to some extent at the top end of 'Corporate' size & strength!! business BreitbartNews business ....and as of days gone by, should be treated with suspicion and contempt. Rule, not rules...
Source: TheEconomist - 🏆 6. / 92 Read more »

House Democrats target Trump’s personal financesHouse Democrats are planning to cross one of Trump’s red lines: investigating his personal finances Yawn Why don’t they govern instead of playing prosecutors?. Again this shows that the Dems had NOTHING to offer America. So why did America elect them. Because the propaganda media a arm of the DNC spreaded B.S. that Democrat voters ate up. The Dems are full of crap, and political will taste the results of being desperate..
Source: politico - 🏆 381. / 59 Read more »

The new aristocrats of powerExecutives work harder than aristocrats ever did, but also share many similarities The bees 🐝 love it Leonard Woolf talked about this..the aristocracy of the proletariat..unfortunately the trash that runs the world today has its own agenda..Peruke, makeup etc. are not the options. They are into transgender, IVF, antifeminism, gay marriage. Who are the ten richest UK? See! And that's why our values are going down the toilet. The former Aristocrats had passion for science and Art and some of that benefited the public. These dummies just want big pink balloon dogs and empty frame paintings. Know nothing about art, science or history.
Source: TheEconomist - 🏆 6. / 92 Read more »