According to the Mortgage Bankers Association, a record percentage of Americans are now being late in paying their mortgages.
The MBA said on Thursday that 9.64% of all loans were in delinquency in the third quarter. This was a rise from a record of 9.24% which prevailed in the second quarter and up from 6.99% which was a year ago.
As said by the MBA chief economist, Jay Brinkmann, job losses are the main reason for the deteriorating performance in mortgage payments.
The Britain’s residential mortgage market is going into loss and pushing non-conforming mortgage-backed securities downwards.
Non-conforming mortgages are higher-risk mortgages, encircling sub prime borrowers who have poor credit histories and others who do not fit prime lending criteria for various reasons.
On Monday it has been said by Capital One Financial Corp. (COF) that those U.S. borrowers who are at least a month behind their card payments has been increased up to to 4.83% in July from 4.77% in June.
According to a regulatory filing Monday, In addition to this, the bank and credit-card issuer have wrote off 9.835% of its card loans last month, which was 9.73% in June.
Sanjay Sakhrani, who is an analyst at Keefe, Bruyette & Woods, has said on Monday in a note that the amount of card debt that has been wrote off in July by Capital One is trending better than what is estimated by them. Sakhrani anticipates that card losses will be at the peak for the overall industry in the fourth quarter or even early next year.