Delinquencies up on “no-doc” loans
This shouldn’t surprise anyone: Delinquencies on mortgages made to borrowers who can’t completely document their income or assets are on the rise, according to a recent story by Reuters News.
Standard & Poor’s reported that the 90-plus-day delinquency rate for these loans made in 2006 stood at 4.71 percent. The same type of loans made in 2005 had a 90-plus-day delinquency rate of 1.97 percent.
Again, this news shouldn’t be shocking. Loans made without complete documentation from borrowers are riskier than are standard mortgage loans. Given that delinquencies are up for mortgage loans in general, it’s little surprise that a rising percentage of those borrowers who couldn’t verify their incomes or assets are also falling behind in their payments.
Tags: mortgage-delinquencies, Reuters, Standard-&-PoorsRelated Stories
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