CLICK HERE. / " title="R.I. MORTGAGE DELINQUENCY rates decreased by 4 points to 10.44 percent this quarter. (Not seasonally-adjusted)For a larger version of this chart, CLICK HERE. /"/>PROVIDENCE – Rhode Island mortgage delinquency rates decreased by 4 basis points in the second quarter compared with the first, coming in at 10.44 percent, the Mortgage Bankers Association reported Thursday.
The largest portion of delinquent mortgages – defined as ones in which a payment is at least 30 days late – were three months or more behind on payments, accounting for 5.33 percent of all mortgages.
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Of the 138,692 mortgages serviced in the Ocean State, 3.53 percent were at least one month behind and 1.58 percent were two months behind.
In addition, the group reported 3.40 percent of Rhode Island mortgages were in the foreclosure process in the second quarter. When combined with those mortgages that were at least 90 days late with payment, the MBA classified 8.73 percent of mortgages as “seriously delinquent.”
On a national level, the seasonally-adjusted delinquency rate decreased to 9.85 percent in the three months ended June 30 from 10.06 percent in the first quarter.
Nevertheless, comparing the year-on-year figures, the national delinquency rate grew 61 basis points from 9.24 percent at the end of the second quarter of 2009.
“These latest delinquency numbers contain a mixture of somewhat good news and somewhat bad news,” said Jay Brinkmann, MBA’s chief economist. “The good news is that foreclosure starts are down and the inventory of homes anywhere in the process of foreclosure fell for the first time since 2006 and had the largest drop since 2005.”
“The disappointing news is that, after declining since the beginning of 2009, the rate of short-term delinquencies is going up and the increase in these short-term delinquencies may ultimately drive the foreclosure measures back up,” added Brinkmann.
The combined percentage of loans in foreclosure or at least one payment past due also registered a slight decline from 14.01 percent last quarter to 13.97 this quarter, not seasonally adjusted.
In spite of the decline in mortgage delinquencies in the state, Rhode Island moved up in national rankings for the quarter, going to ninth place from 12th place in the first quarter. Overall, Mississippi had the highest percentage of delinquencies, ranking first at 13.66 percent, while Nevada earned the top spot in foreclosures started this quarter, coming in at 2.93 percent.
Regionally, the Northeast reported the second-lowest delinquency rate, 8.54 percent; the West North area encompassing Iowa, North Dakota and Kansas registered 7.08 percent.
