ANALYSIS: Mortgage Charge-offs and Delinquencies Soar
November 28 2007
Source: CreditandCollectionsWorld.com and SourceMedia, Inc.
Net charge-offs of real estate loans secured by one- to four-family residential properties at all FDIC-insured institutions through the first nine months of 2007 totaled $3.8 billion, up $2.3 billion or 156% from just under $1.5 billion during the first nine months of 2006.
The recovery rate on charged-off residential mortgage loans fell to 14.1% year to date in 2007, compared with 20.9% throughout the same period of 2006. FDIC-insured financial institutions held total residential mortgages of $2.24 trillion during the third quarter, up 2.9% from holdings of $2.17 trillion in the same period last year, according to the FDICís Quarterly Banking Profile, released Wednesday.
Home mortgages that were 30-89 days past due during the third quarter totaled $43.7 billion, up 67% from $26.2 billion in the same quarter last year. Mortgages that were 90 or more days past due totaled $11.8 billion, increasing 38% from roughly $8.6 billion in last yearís third quarter. Home mortgage loans in nonaccrual status, that is, loans considered an impaired asset, totaled $26.9 billion, up 108.6% from $12.9 billion a year ago, FDIC statistics show.