Delinquencies for 2007 mortgages outpacing 2006: report
NEW YORK (Reuters) - Delinquencies of prime mortgages originated in 2007 are outpacing those made in 2006, suggesting the U.S. housing and financial crisis may be deeper than initial estimates, the Wall Street Journal said on Thursday.
Citing an analysis prepared for the newspaper by the Federal Deposit Insurance Corp, the Journal said 0.91 percent of prime mortgages from 2007 were seriously delinquent after 12 months, meaning they were in foreclosure or at least 90 days past due.
That figure is nearly triple levels seen in 2006, when 0.33 percent of prime mortgages were delinquent after 12 months, the FDIC data showed.
The FDIC's analysis was based on mortgage data provided by LoanPerformance, a unit of FirstAmerican CoreLogic Inc. A FDIC spokesman didn't immediately return a phone call seeking comment.
The Journal also said data on other classes of mortgages suggest the same trend. Freddie Mac, a government-sponsored mortgage giant, reported on Wednesday that 1.38 percent of 2007-vintage loans it purchased were seriously delinquent after 18 months, compared with 0.38 percent for similar 2006 loans.
For subprime loans made to homeowners with weak or nonexistent credit histories, the figures are more staggering. Some 65 percent of subprime loans originated in 2007 will end up in default, versus about 45 percent for 2006-vintage loans, according to estimates by UBS AG, the Journal report said.
(Reporting by Walden Siew; Editing by Theodore d'Afflisio)
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.