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More New Mexicans are having trouble paying their mortgages on time, as an industry survey has revealed a 7.3 percent increase in those overdue on their loans.
According to the Mortgage Bankers Association, a Washington, D.C., trade group that tracks mortgage delinquencies quarterly, 4.3 percent of New Mexico mortgages were overdue by at least thirty days as of Dec. 31, an increase from 4.01 percent delinquent on Sept. 30, 2005.
In the seriously delinquent category (90 days or more overdue or in the foreclosure process), New Mexico tallied 1.84 percent of all mortgages, about even with the 1.81 percent of loans that were seriously delinquent in the third quarter.
A little more than one percent of all mortgages in New Mexico were in foreclosure at the end of the fourth quarter, with .45 percent having started into foreclosure during the quarter. Both those figures were flat relative to comparable statistics in the third quarter.
MBA's survey tracked 228,174 mortgages serviced in the state. (A servicer collects payments and arranges tax and escrow payments for the borrower. The number of loans serviced in the state differs from the number originated each year, as lenders service mortgages made in previous years.) That means some 10,000 loans are at least 30 days overdue, and more than 2,250 are in foreclosure in New Mexico.
Why the spike in overdues?
"There are a number of factors," says Bill Elliott, immediate past president of the New Mexico Mortgage Lenders Association. These include rising interest rates, rising energy prices, and a tendency by borrowers not to ask for help from their lenders until it is too late. Despite a still-decent housing market in New Mexico, "there are still some people who let things go too far," he says.
"A lot of people don't realize the servicer doesn't want their house," says Elliott, who is branch manager of Rocky Mountain Mortgage in Albuquerque, an affiliate of Guild Mortgage of San Diego. "Most people stick their head in the sand. Most people don't have the financial literacy we've been pushing them to do."
Elliott expects mortgage delinquencies to increase over the rest of the year, although he points out "the real estate market is still good in New Mexico. New home construction is still good."
He points to credit card issuers increasing the minimum payments they assess already stretched-thin borrowers as one reason why mortgage delinquencies might continue to go up.
It doesn't surprise the local lender to find that subprime mortgage delinquency in the state is considerably higher (11.76 percent at the end of the year) than the prime or "conventional" market (2.28 percent).
Nearly percent of mortgages made to subprime borrowers (6.97 percent) were in the "seriously delinquent" category at the end of the year, down a touch from 7.05 percent at the end of the third quarter.
The MBA counted the state market at 167,235 mortgages to "prime" borrowers and 21,814 to subprime borrowers, those with poorer credit. It measured 25,583 FHA loans and 13,066 insured by the Department of Veterans Affairs.
Fixed-rate loans continued to perform better than adjustable-rate mortgages in New Mexico during the fourth quarter. Analysts have pointed to adjustable loans as being more risky than traditional fixed-rates -- especially the no-equity mortgages called IOs, for interest-only, plus payment option ARMs.
Prime FRMs had a delinquency rate of just 2 percent at the end of the year, the MBA survey showed, while prime ARMs showed 2.92 percent in overdues.
On the subprime side, FRMs showed a 10.09 percent delinquency rate, while subprime ARMs came in performing worse, at 12.79 percent overdue.
The association's survey tallied 41.2 million mortgage loans serviced in the country as of the end of the year. Of those, 3.5 million were in the Mountain States region of New Mexico, Utah, Wyoming, Nevada, Arizona, Colorado, Idaho and Montana.
New Mexico's total loans serviced increased by about 3,000 during the fourth quarter, as the MBA tally gave it 225,000 loans at the end of the third quarter.
He points to credit card issuers increasing the minimum payments they assess already stretched-thin borrowers as one reason why mortgage delinquencies might continue to go up.
It doesn't surprise the local lender to find that subprime mortgage delinquency in the state is considerably higher (11.76 percent at the end of the year) than the prime or "conventional" market (2.28 percent).
Nearly percent of mortgages made to subprime borrowers (6.97 percent) were in the "seriously delinquent" category at the end of the year, down a touch from 7.05 percent at the end of the third quarter.
The MBA counted the state market at 167,235 mortgages to "prime" borrowers and 21,814 to subprime borrowers, those with poorer credit. It measured 25,583 FHA loans and 13,066 insured by the Department of Veterans Affairs.
Fixed-rate loans continued to perform better than adjustable-rate mortgages in New Mexico during the fourth quarter. Analysts have pointed to adjustable loans as being more risky than traditional fixed-rates -- especially the no-equity mortgages called IOs, for interest-only, plus payment option ARMs.
Prime FRMs had a delinquency rate of just 2 percent at the end of the year, the MBA survey showed, while prime ARMs showed 2.92 percent in overdues.
On the subprime side, FRMs showed a 10.09 percent delinquency rate, while subprime ARMs came in performing worse, at 12.79 percent overdue.
The association's survey tallied 41.2 million mortgage loans serviced in the country as of the end of the year. Of those, 3.5 million were in the Mountain States region of New Mexico, Utah, Wyoming, Nevada, Arizona, Colorado, Idaho and Montana.
New Mexico's total loans serviced increased by about 3,000 during the fourth quarter, as the MBA tally gave it 225,000 loans at the end of the third quarter.
http://sanantonio.bizjournals.com/albuquerque/stories/2006/04/24/story7.html?page=1
According to the Mortgage Bankers Association, a Washington, D.C., trade group that tracks mortgage delinquencies quarterly, 4.3 percent of New Mexico mortgages were overdue by at least thirty days as of Dec. 31, an increase from 4.01 percent delinquent on Sept. 30, 2005.
In the seriously delinquent category (90 days or more overdue or in the foreclosure process), New Mexico tallied 1.84 percent of all mortgages, about even with the 1.81 percent of loans that were seriously delinquent in the third quarter.
A little more than one percent of all mortgages in New Mexico were in foreclosure at the end of the fourth quarter, with .45 percent having started into foreclosure during the quarter. Both those figures were flat relative to comparable statistics in the third quarter.
MBA's survey tracked 228,174 mortgages serviced in the state. (A servicer collects payments and arranges tax and escrow payments for the borrower. The number of loans serviced in the state differs from the number originated each year, as lenders service mortgages made in previous years.) That means some 10,000 loans are at least 30 days overdue, and more than 2,250 are in foreclosure in New Mexico.
Why the spike in overdues?
"There are a number of factors," says Bill Elliott, immediate past president of the New Mexico Mortgage Lenders Association. These include rising interest rates, rising energy prices, and a tendency by borrowers not to ask for help from their lenders until it is too late. Despite a still-decent housing market in New Mexico, "there are still some people who let things go too far," he says.
"A lot of people don't realize the servicer doesn't want their house," says Elliott, who is branch manager of Rocky Mountain Mortgage in Albuquerque, an affiliate of Guild Mortgage of San Diego. "Most people stick their head in the sand. Most people don't have the financial literacy we've been pushing them to do."
Elliott expects mortgage delinquencies to increase over the rest of the year, although he points out "the real estate market is still good in New Mexico. New home construction is still good."
He points to credit card issuers increasing the minimum payments they assess already stretched-thin borrowers as one reason why mortgage delinquencies might continue to go up.
It doesn't surprise the local lender to find that subprime mortgage delinquency in the state is considerably higher (11.76 percent at the end of the year) than the prime or "conventional" market (2.28 percent).
Nearly percent of mortgages made to subprime borrowers (6.97 percent) were in the "seriously delinquent" category at the end of the year, down a touch from 7.05 percent at the end of the third quarter.
The MBA counted the state market at 167,235 mortgages to "prime" borrowers and 21,814 to subprime borrowers, those with poorer credit. It measured 25,583 FHA loans and 13,066 insured by the Department of Veterans Affairs.
Fixed-rate loans continued to perform better than adjustable-rate mortgages in New Mexico during the fourth quarter. Analysts have pointed to adjustable loans as being more risky than traditional fixed-rates -- especially the no-equity mortgages called IOs, for interest-only, plus payment option ARMs.
Prime FRMs had a delinquency rate of just 2 percent at the end of the year, the MBA survey showed, while prime ARMs showed 2.92 percent in overdues.
On the subprime side, FRMs showed a 10.09 percent delinquency rate, while subprime ARMs came in performing worse, at 12.79 percent overdue.
The association's survey tallied 41.2 million mortgage loans serviced in the country as of the end of the year. Of those, 3.5 million were in the Mountain States region of New Mexico, Utah, Wyoming, Nevada, Arizona, Colorado, Idaho and Montana.
New Mexico's total loans serviced increased by about 3,000 during the fourth quarter, as the MBA tally gave it 225,000 loans at the end of the third quarter.
He points to credit card issuers increasing the minimum payments they assess already stretched-thin borrowers as one reason why mortgage delinquencies might continue to go up.
It doesn't surprise the local lender to find that subprime mortgage delinquency in the state is considerably higher (11.76 percent at the end of the year) than the prime or "conventional" market (2.28 percent).
Nearly percent of mortgages made to subprime borrowers (6.97 percent) were in the "seriously delinquent" category at the end of the year, down a touch from 7.05 percent at the end of the third quarter.
The MBA counted the state market at 167,235 mortgages to "prime" borrowers and 21,814 to subprime borrowers, those with poorer credit. It measured 25,583 FHA loans and 13,066 insured by the Department of Veterans Affairs.
Fixed-rate loans continued to perform better than adjustable-rate mortgages in New Mexico during the fourth quarter. Analysts have pointed to adjustable loans as being more risky than traditional fixed-rates -- especially the no-equity mortgages called IOs, for interest-only, plus payment option ARMs.
Prime FRMs had a delinquency rate of just 2 percent at the end of the year, the MBA survey showed, while prime ARMs showed 2.92 percent in overdues.
On the subprime side, FRMs showed a 10.09 percent delinquency rate, while subprime ARMs came in performing worse, at 12.79 percent overdue.
The association's survey tallied 41.2 million mortgage loans serviced in the country as of the end of the year. Of those, 3.5 million were in the Mountain States region of New Mexico, Utah, Wyoming, Nevada, Arizona, Colorado, Idaho and Montana.
New Mexico's total loans serviced increased by about 3,000 during the fourth quarter, as the MBA tally gave it 225,000 loans at the end of the third quarter.
http://sanantonio.bizjournals.com/albuquerque/stories/2006/04/24/story7.html?page=1
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