The delinquency rate for mortgage loans on residential properties in New Jersey was 7.81 percent at the end of the second quarter of 2011, an increase of 24 basis points from the first quarter of 2011, according to the Mortgage Bankers Association (MBA). The delinquency rate excludes loans in the process of foreclosure. The percentage of loans in New Jersey on which foreclosure was started during the quarter fell 12 basis points to 0.99 percent, while the percentage of loans in the foreclosure process at the end of the quarter rose 23 basis points to 7.97 percent. The delinquency rate for prime adjustable-rate mortgages (ARMs) increased 35 basis points to 9.58 percent and the rate for prime fixed-rate mortgages (FRMs) increased 21 basis points to 4.65 percent. The delinquency rate for sub-prime ARM loans decreased 52 basis points to 21.97 percent, while the rate for sub-prime FRMs decreased 55 basis points to 20.68 percent. The delinquency rates for Federal Housing Administration (FHA) and U.S. Department of Veterans Affairs (VA) loans were 14.31 percent and 8.39 percent, respectively—up 110 basis points for FHA loans and up 45 basis points for VA loans. The foreclosure starts rate for prime ARM loans in New Jersey decreased 24 basis points to 1.51 percent, while the rate for prime FRMs decreased seven basis points to 0.67 percent. The foreclosure starts rate for sub-prime ARM loans decreased 32 basis points to 3.31 percent, while the rate for sub-prime FRMs decreased three basis points to 2.84 percent. The percentage of prime ARM loans in foreclosure increased 43 basis points to 14.72 percent and increased 28 basis points to 4.57 percent for prime FRMs. The rate for sub-prime ARM loans increased 135 basis points to 40.85 percent, while the rate for sub-prime FRMs increased 177 basis points to 21.98 percent. The percentage of FHA loans in foreclosure decreased five basis points to 7.48 percent. The percentage of VA loans in foreclosure increased nine basis points to 5.89 percent. Among the 50 states and the District of Columbia, New Jersey ranked 27th in delinquencies and 11th in foreclosures started. Mississippi ranked first in delinquencies with a rate of 12.86 percent and Nevada ranked first in foreclosure starts with a rate of 2.25 percent. On a national level, the delinquency rate for mortgage loans on one- to four-unit residential properties was 8.11 percent on a non-seasonally adjusted basis, up 32 basis points from 7.79 percent in the first quarter of 2011. The seasonally adjusted delinquency rate on residential properties was 8.44 percent in the second quarter, up 12 basis points from last quarter’s seasonally adjusted rate. The non-seasonally adjusted percentage of loans in which foreclosure was started during the quarter decreased 12 basis points to 0.96 percent, while the non-seasonally adjusted percentage of loans in the foreclosure process at the end of the quarter fell nine basis points to 4.43 percent.