Comments on: FHA Foreclosure Rates Lower Than Mortgages In General http://www.fhaloanpros.com/2009/03/fha-foreclosure-rates-lower-than-mortgages-in-general/ The Unofficial Guide to FHA Loans & Mortgages Sat, 21 Nov 2009 09:53:22 +0000 http://wordpress.org/?v=2.6 By: Frank Meyer http://www.fhaloanpros.com/2009/03/fha-foreclosure-rates-lower-than-mortgages-in-general/#comment-46133 Frank Meyer Mon, 30 Mar 2009 17:24:58 +0000 http://www.fhaloanpros.com/?p=928#comment-46133 Whenever a mortgage insurance book puts on a huge new volume of loans, the delinquency and foreclosure rates both plummet, until that new cohort of loans has some time to age. Only experience broken out by age-of-loan will give a true picture. In particular, comparing the FHA total book delinquency and foreclosure rates with the MBA inventory delinquency and foreclosure rates gives a false picture of the relative riskiness of the two groups of loans, since the latter group has a much greater average age. Whenever a mortgage insurance book puts on a huge new volume of loans, the delinquency and foreclosure rates both plummet, until that new cohort of loans has some time to age. Only experience broken out by age-of-loan will give a true picture.

In particular, comparing the FHA total book delinquency and foreclosure rates with the MBA inventory delinquency and foreclosure rates gives a false picture of the relative riskiness of the two groups of loans, since the latter group has a much greater average age.

]]> By: Chandler Real Estate http://www.fhaloanpros.com/2009/03/fha-foreclosure-rates-lower-than-mortgages-in-general/#comment-44295 Chandler Real Estate Fri, 13 Mar 2009 03:34:33 +0000 http://www.fhaloanpros.com/?p=928#comment-44295 Great stats to point out with respect to FHA loans. I estimate that these are about 70%+ of loans here in the Phoenix area right now so it is good to see that their performance is somewhat better in this case. I tend to think a month-to-month tracking of foreclosure rates is more telling given that the annualized comparisons still show a period not completely beset by foreclosures versus a period that is. Thanks for the great information again. David Lorti Great stats to point out with respect to FHA loans. I estimate that these are about 70%+ of loans here in the Phoenix area right now so it is good to see that their performance is somewhat better in this case.

I tend to think a month-to-month tracking of foreclosure rates is more telling given that the annualized comparisons still show a period not completely beset by foreclosures versus a period that is.

Thanks for the great information again.

David Lorti

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