Mortgage delinquencies hit record high in 3Q

The delinquency rate on residential mortgages fro one-to-four unite properties rose to a record 9.64 percent on a seasonally adjusted basis in the third quarter, according to data released Nov. 19 by the Mortgage Bankers Association.

The previous record, 8.86 percent, was set in the second quarter, according to an MBA news release.

The delinquency rate covers loans that are at least one payment past due, but it does not include loans that have entered the foreclosure process.

The MBA's National Delinquency Survey found that foreclosure actions were started on 1.42 percent of loans in the third quarter, up six basis points from the second quarter and 35 basis points higher than a year ago.

"Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage-point increases in (gross domestic product)," said MBA Chief Economist Jay Brinkmann in a news release.

"Over the last year, we have seen the ranks of the unemployed increase by about 5.5 million people, increasing the number of seriously delinquent loans by almost 2 million ... and increasing the rate of new foreclosures from 1.07 percent to 1.42 percent," he added.

He noted that Florida, California, Arizona and Nevada have a disproportionate share of mortgage problems.

Those four states accounted for 43 percent of all foreclosures started in the third quarter, according to the report.