Late payments on home loans see record level in 2009 fourth quarter
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According to TransUnion, the number of home loans that are 60 or more days past due increased for the 12th straight quarter at the end of 2009. The 6.89 percent delinquency rate reported for that final quarter is the highest ever, the firm noted.
In comparison to the third quarter, when delinquency rates were at 6.25 percent, the fourth quarter was up 10.24 percent.
Along with posting the largest rate, the fourth quarter was the first time in three consecutive monitoring periods that the rate of increase for delinquency rates on home loans did not slow down.
Nationally speaking, the increase is tied to a seasonal phenomenon when consumers have less money to spend because of holiday expenditures, which is coupled with them awaiting their tax returns, said F.J. Guarrera, vice president of TransUnion’s Financial Services business unit.
“At a more granular level, variations in delinquency highlight the fact that the recession and the eventual recovery are both regional phenomena tied for the most part to localized house price conditions and unemployment levels,” Guarrera said.
The highest delinquency rate in the country during the fourth quarter was seen in Nevada, which came in at 16.19 percent. Florida came in second at 14.93 percent. Meanwhile, North Dakota posted the lowest rate at 1.84 percent followed by South Dakota’s 2.46 percent and Alaska’s 2.84 percent.
As consumers continue to have difficulties paying their home loans on time, it could lead to further foreclosures. However, a recent report from RealtyTrac shows that foreclosure filings were down almost 10 percent in January.
The fourth quarter saw more late payments on home loans.
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