December 7 2010 (Jeff Alan)
According to the most recent MBA National Delinquency Survey, mortgage giant Freddic Mac’s serious delinquency rates were less than half the industry average in the third quarter of 2010.
This was the third consecutive quarter that serious delinquency rates dropped at Freddie Mac although they still remain at significantly elevated levels.
At the end of the third quarter of 2010, 3.8 percent of Freddie Mac loans were seriously delinquent, less than half the industry average of 8.7 percent. Seriously delinquent mortgages are loans that are 90+ days past due or in foreclosure.
Freddie Mac attributes its lower delinquency rates to the fact that it primarily operates in the conforming mortgage market and normally only buys 30 year and 15 year fixed rate mortgages.
Additionally, Freddie Mac is an established industry leader in identifying and addressing delinquencies before they become foreclosures. Since the beginning of 2009, we have helped nearly 370,000 struggling borrowers avoid foreclosure.
While delinquencies are up across the board, the delinquency rate for sub-prime mortgages is more than four times that for prime, conventional fixed-rate mortgages.
Tags: freddie mac, serious delinquency rates, mortgages, loans, mortgage market, sub-prime mortgages, conventional fixed rate mortgages, 30 year fixed, 15 year fixed